definition

Hockey stick growth refers to a pattern of business growth where a company experiences a long period of slow or flat progress, followed by a sudden and dramatic upward trajectory in revenue, users, or market adoption.

The name comes from the shape of a hockey stick: a flat blade that abruptly curves upward into a steep handle. This concept is frequently used in startups and investing to describe companies that appear stagnant at first but then achieve exponential growth.

The idea gained particular popularity in the tech and venture capital world, where investors frequently seek businesses with the potential to scale significantly once product-market fit is achieved.

In many cases, startups spend years developing technology, refining their product, or building a customer base before hitting a tipping point that triggers accelerated adoption.

A classic real-world example is Facebook. In its early days, growth was limited to college campuses, but once the platform opened to the public and network effects kicked in, its user base skyrocketed in a hockey stick fashion.

Other companies like Zoom and Shopify also demonstrated similar growth curves, especially during the COVID-19 pandemic when demand surged unexpectedly.

Hockey stick growth illustrates the kind of exponential return investors seek and the inflection point founders strive for. For startups, achieving this curve often signals not just survival but long-term viability. For investors, spotting companies with hockey stick potential can lead to outsized returns.