Startup Success Rate: Seed to Series A
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 Faced by Startups
The report, 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 reasons for the slowdown.
- Weak go-to-market strategies
- Poor hiring decisions
- Inflated views of Product-Market Fit
The issue is not ambition but execution. 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 faced by young businesses in progressing through funding rounds.
Author's summary: New research reveals a significant decline in UK startups progressing from seed to Series A funding rounds.