Startup Success Rate Declines
Only 2% of startups make it from seed to series A, according to new research by ScaleWise.
The number of UK startups graduating from seed to series A has decreased from 8% to 2% over the past 18 months, based on Crunchbase data.
Challenges Facing Startups
A report by ScaleWise, Bridging the Gap: The Graduation Crisis in Early-Stage Start-ups, identifies weak go-to-market strategies, poor hiring decisions, and inflated views of Product-Market Fit as key factors contributing to the slowdown.
- Weak go-to-market strategies
- Poor hiring decisions
- Inflated views of Product-Market Fit
Many founders are struggling to convert their strategy into repeatable, structured action that investors trust.
ScaleWise surveyed 100 startup and scale-up leaders to understand the challenges facing young businesses in progressing through funding rounds, concluding that the issue is not ambition but execution.
Author's summary: Startups face significant challenges in advancing from seed to series A funding rounds.
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