Startups Graduation Rate from Seed to Series A Drops to 2%
According to a new report by ScaleWise, the number of UK startups graduating from Seed to Series A has significantly decreased from 8% to 2% over the past 18 months, based on Crunchbase data.
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 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 faced by young businesses in progressing through their funding rounds, concluding that the issue lies not in ambition, but in execution.
Author's summary: Startups face challenges in converting strategy into action.