What is Hockey Stick Growth?

Hockey Stick Growth refers to a growth pattern characterized by a long period of slow, linear growth followed by a sudden, sharp, and exponential increase. The line on the chart resembles the shape of a hockey stick. This pattern is the aspirational goal for most venture-backed startups.

For Startups: Achieving hockey stick growth is often the result of finally hitting product-market fit, combined with a scalable go-to-market strategy. It's the moment when network effects kick in or a viral loop starts to accelerate. Founders often present a hockey stick projection in their financial models to showcase the potential for venture-scale returns to investors.

Example: A SaaS company has a flat MRR for a year while iterating on its product. After a key feature release, it hits an inflection point and its MRR starts doubling every quarter, creating a hockey stick curve on its growth chart.