Startup Success Rate Declines
Research by ScaleWise reveals that only 2% of startups in the UK successfully transition from Seed to Series A, a significant drop from 8% over the past 18 months, according to Crunchbase data.
The report, Bridging the Gap: The Graduation Crisis in Early-Stage Start-ups, identifies key factors contributing to this decline, including weak go-to-market strategies, poor hiring decisions, and inflated views of Product-Market Fit.
Many founders are struggling to convert their strategy into repeatable, structured action that investors trust.
- Weak go-to-market strategies
- Poor hiring decisions
- Inflated views of Product-Market Fit
ScaleWise surveyed 100 startup and scale-up leaders to understand the challenges faced by young businesses in progressing through funding rounds, concluding that the issue lies not in ambition, but in execution.
Author's summary: Startups face significant challenges in transitioning from Seed to Series A.
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