J Curve

The J Curve represents the initial dip followed by significant growth in the value of an investment or project. It is often observed in private equity and venture capital investments, where early losses are typically followed by substantial gains as the investment matures. Understanding the J Curve is important for managing investor expectations and recognizing the long-term potential of an investment.

• Initial dip followed by significant growth.
• Common in private equity and venture capital.
• Important for managing investor expectations.
• Indicates long-term investment potential.