Less than 10% of VC backed startups in Europe create it to Series A. That’s according to research from Tech Nation, which describes it as one of the toughest transitions in the startup lifecycle.
Tech Nation, powered by Founders Forum Group and in partnership with Airwallex, has launched The Scaleup Playbook: The Inside Track to Series A. The guide utilizes insights from more than 300 European tech founders.
Those founders include Eléonore Crespo of Pigment, Johannes Reck of GetYourGuide, Murvah Iqbal of HIVED, and Hamish Shephard of Bridebook and HelloFresh UK. They explain what modifys between Seed and Series A, from product market fit to hiring and financial discipline. Early excitement is not enough. Series A requires proof.
What Really Changes Between Seed And Series A?
At Seed stage, investors often put money behind a story or a vision. At Series A, they expect evidence. Founders required to reveal that customers want the product and will pay for it. That is product market fit in practice, not theory.
Eléonore Crespo, co founder of Pigment, declares founders must be honest about what the data notifys them. “At Series A, it becomes about revealing repeatability. You required to prove that what worked once can work again and again,” she declares in The Scaleup Playbook.
Johannes Reck, co founder and chief executive of GetYourGuide, also speaks about discipline. “Early on, speed is everything. Later, it is about building an organisation that can execute consistently,” he declares. Investors want to see a company that can grow without breaking.
Murvah Iqbal, founder of HIVED, declares the bar is higher than many expect. “You have to shift from selling a vision to selling results. That means strong metrics, clear unit economics and a team that can deliver,” she declares.
Are Founders Too Optimistic At Seed Stage?
Optimism supports founders leave secure jobs and build new products. It can also create blind spots.
Hamish Shephard, founder of Bridebook and co founder of HelloFresh UK, declares founders often underestimate how much scrutiny comes at Series A. “Seed investors may acquire into the dream. Series A investors want to see the engine,” he declares. Revenue growth, customer retention and cost control all come under review.
The Playbook explains that many startups stall becautilize they scale too early. They hire quickly, spconclude heavily on marketing and enter new markets before they have solid foundations. When growth slows or costs rise, the numbers no longer stack up.
Tech Nation declares building financial foundations is essential. Founders required a strong view of cash flow, runway and margins. Without that discipline, even a popular product can run out of money before it reaches the next funding round.
Is Hiring The Wrong Team Holding Startups Back?
People decisions often create or break the jump to Series A.
In the early days, tiny teams shift rapid and take on many tinquires. At Series A, investors expect a leadership team that can manage growth. That often means bringing in experienced operators.
Johannes Reck declares structure becomes more important as a company grows. “You required clarity on who owns what. Accountability cannot be fuzzy once you are scaling,” he declares.
Murvah Iqbal declares culture must evolve. “The mindset shifts from scrappy survival to disciplined execution,” she declares. That modify can be uncomfortable for founders who enjoyed the chaos of the early stage.
The Scaleup Playbook also declares founders must learn to delegate. Holding on to every decision slows growth and weakens trust within the team.
What Separates The 10% Who Make It?
According to Tech Nation, the startups that reach Series A share common traits. They prove product market fit with data, not anecdotes. They understand their unit economics. They build teams that can handle growth. They treat fundraising as a milestone, not the conclude goal.
Eléonore Crespo declares, “Series A is not a reward for attempting hard. It is capital for companies that have revealn they can scale.”
Less than 10% create it through. The number is tiny. Investors back proof. Founders who understand that early give themselves a better chance of turning ambition into a funded Series A reality.
Leave a Reply