StartUp is a term used for a company in its early stages. A ScaleUp company has validated it’s product-market fit and proven its sustainability.
Recommended reading – What is a ScaleUp definition.
There are 5 ways in which to help understand the key differences between each phase:
Stage of Funding
- ScaleUps typically have established institutional investors because they have recurring and repeatable revenue.
Product market fit
- In the ScaleUp phase, the market has validated the product or service with profitable proven unit economics, identified key customer bases and repeatable sales.
Level of Risk
- Risk lowers significantly in the ScaleUp phase as the company is usually backed by venture-level investors or reached a level of maturity for organizational success. The process then focuses on building formidable processes to scale faster (thus why it’s the messy middle, everything is moving so fast)
Team Member Roles
- In StartUp, many roles wear many hats. In the ScaleUp phase, roles become more distinct and defined because they have specific growth priorities.
- ScaleUps require a system of strong processes to be firmly in place. Brand alignment is also a necessary step of this level making leadership even more important than before. ScaleUp leaders need to be the most versatile and flexible.
Number 5 is where ScaleUp Edge comes in. We endeavor to foster and build stronger ScaleUp executives for a brighter and better future. We do this because we believe it will have an impact on the entire ecosystem and have a long lasting impact on our community.
At ScaleUp Edge we focus on building high-impact frameworks for executives to get access to talent, market and the playbook to accelerate their person and professional growth on a local and global scale.