According to Crunchbase data shared in a report by ScaleWise, the number of UK startups graduating from Seed to Series A has decreased from 8% to 2% over the past 18 months.
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.
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, concluding that the issue lies not with ambition, but with execution.
Author's summary: Startups face challenges in progressing from Seed to Series A due to execution issues.