Picture this: a graph that climbs slowly before rocketing skyward—resembling a hockey stick. This is the famed hockey stick chart, a staple in finance, technology, and startup circles. But beyond its dramatic shape, what does it mean for Australian investors and businesses in 2025?
A hockey stick chart visually depicts data that stays flat for a period, then experiences a sharp, upward surge—just like the blade of a hockey stick. It’s often used to illustrate rapid revenue growth, sudden customer adoption, or, sometimes, mounting risk. In the world of investing, a hockey stick trajectory can trigger excitement or caution depending on what’s driving the spike.
In 2025, the hockey stick chart has become especially relevant for Australians tracking tech stocks, renewable energy investments, and emerging market trends. With the ASX seeing new waves of tech IPOs and government policy fueling green innovation, these charts are appearing more often in earnings reports and investor presentations.
1. Australian Tech Startups
Melbourne-based fintechs and Sydney’s SaaS innovators love to showcase hockey stick charts during capital raises. For instance, in 2025, payments startup FlashPay reported flat transaction volumes throughout 2023 and 2024—then surged by 250% in Q1 2025 after securing a major retail partner. Their chart looked exactly like a hockey stick, boosting investor confidence and driving up their valuation.
2. Renewable Energy Investment
The Australian government’s expanded Clean Energy Finance Corporation mandate in 2025 has turbocharged solar and battery project funding. Investment charts for the sector show a flat line from 2018-2023, then a dramatic upward spike in 2024-2025. This reflects not just policy incentives but also a global rush to decarbonise and electrify.
While a hockey stick chart can make for a compelling pitch deck, it’s also a classic warning sign of over-optimism—or worse, creative accounting. In 2025, ASIC has issued new guidance on financial disclosures for listed companies, after several ASX tech firms were found overstating future growth projections using exaggerated hockey stick charts.
Smart investors are now asking tougher questions: What’s causing the spike? Are there confirmed contracts or just hopeful forecasts? How do these projections compare to sector benchmarks?
Whether you’re an investor, entrepreneur, or analyst, interpreting hockey stick charts requires a mix of scepticism and context. Here’s how to approach them in 2025:
The hockey stick chart is a powerful storytelling tool—but in 2025, Australian investors know it’s just the start of the conversation. Used wisely, it can highlight emerging opportunities in tech and renewables. Used carelessly, it can mask risk and inflate expectations. The smartest investors dig beneath the surface, asking the right questions and seeking the data that backs up the story.