A pivot is a dramatic change in the company’s strategy. Pivots can occur in early-stage companies when a management team realizes that the target market does not have the growth potential they thought, the technology does not work, the company’s initial product or service is not getting traction in the market, and more. If the company can identify a promising new market, technology, etc., then the company may move, or pivot, to focus on that new opportunity.
Related Terms: Short Term Debt, Long Term Debt
