Discover the harsh truth behind scaleup stats and the mindset, money, and muscle it takes to level up.
In the fast-paced world of business, startups emerge as the breeding ground for innovation. They begin with a bright idea, a small team, and the dream of changing the market. But a key moment arrives when you realize that to truly grow—to go from startup to scaleup—finding product-market fit is not enough. That’s when the real challenge begins. You need vision, strategy, preparation, and a team that’s got your back. Is your business ready?
“Scaleup” is not just a buzzword; it’s that phase in a company’s life when you’ve already proven market viability and are ready to grow rapidly. But beware: not everyone gets to this stage. Those that do become engines of job creation and real change, solving bold missions at scale.
The OECD defines a scaleup as a company that grows more than 20% annually over three years and has at least 10 employees at the beginning of that period. In a European pilot project, only 13% to 15% of companies made it. That’s how hard it is. It’s not just about selling more; it’s about structural transformation, requiring solid processes, an aligned team, and significant funding.
These are some challenges I’ve seen, both as an entrepreneur and as an investor:
1) The Right Funding
You’ve validated your product and want to grow, but… growth costs money. The key is finding investors who don’t just provide capital but also understand your vision. Look for investors who offer more—experience, connections, mentoring, and even help with your next funding round. Some Corporate Venture Capital firms even help you sell, offering strategic access to clients or co-designing your product.
Tip: In this stage, traction makes all the difference. It gives you the power to choose your investors. Being “irresistible” means clarity from the team, excellent execution, and a compelling story behind your expansion.
2) Building a Scalable Infrastructure
Without strong systems, scaling is just a buzzword. Your tech must handle customer volume and streamline processes. Serious growth demands serious prep.
Tip: Invest in the right tech. Your systems must support the exponential growth you’re dreaming of. Avoid overbuilding too soon, but don’t let weak infrastructure hold you back.
3) Keeping Culture Intact During Growth
With every new hire or market, it’s easy to lose the essence that made your company special. I’ve seen promising startups lose their culture by growing too fast. Protecting your identity and values is key—principles like acting like an owner, putting the customer first, and moving fast often stand out in global success stories.
Tip: Make your company’s DNA clear to everyone. Be flexible enough to adapt to new geographies, but never dilute your essence. Keep talking to customers and keep that “owner mentality.”
4) Expanding into New Markets
It’s exciting—but hard. Regulatory barriers, cultural adjustments, even language challenges—every new market is its own beast. When Erudit entered a new country, we faced everything from changing the tone in marketing to product adjustments.
Tip: Work with local experts. They’ll help you understand the market firsthand and avoid costly cultural missteps.
Is your startup ready to scale?
Scaling isn’t for everyone, and not every company needs to do it right away. Take time to assess if you’re truly ready. When the time comes, being prepared could mean the difference between success and failure. Dare to scale—but do it with a solid strategy.
