According to a new report by ScaleWise, only 2% of UK startups now successfully transition from Seed to Series A, down from 8% over the past 18 months, based on 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.
ScaleWise's survey of 100 startup and scale-up leaders reveals that the issue lies not in ambition, but in execution, highlighting the need for improved strategies to secure investor trust.
Author's summary: UK startups face challenges in transitioning from Seed to Series A.