Explaining the revenue hockey stick in funding presentations

One of the last pages in every venture capitalist funding presentation is the “hockey stick” of revenues and profits shooting through the roof. VCs expect a bit of optimism from a startup, but at the same time want to do a reality check on these numbers.

I often use a company snapshot, a tree of the key factors that add up/multiply to the projected revenue figure. Make sure the factors are real things you can touch: people, visits, etc.  CORRECTION: Also make sure the tree adds up and calculates through, something that cannot be said about the example below.