Hockey Stick Projection
Content
Definition
Hockey Stick Projection are financial projections that show slow growth initially, followed by a rapid increase in revenue, often used by startups during fundraising to illustrate potential growth to investors.
Usage and Context
In the startup world, hockey stick projections are common. They show a period of slow start, then a sharp increase in money made. This is to impress investors.
Frequently asked questions
- What does a hockey stick projection mean? A hockey stick projection shows a startup’s money growth. At first, it grows slowly. Then, it shoots up quickly.
- Why do startups use hockey stick projections? Startups use these projections to show investors they can grow fast after a slow start. It helps in getting investment.
- How realistic are hockey stick projections? Sometimes, these projections are more hopeful than real. They depend on many things going right for the startup.
Benefits
Hockey stick projections can attract investors by showing big growth potential. They help startups stand out during fundraising.
Conclusion
Hockey stick projections are a way for startups to show their growth potential. While ambitious, they need a solid plan to become real.
