We analyzed a cohort of VC-backed startups to assess their burn-to-growth ratio (down by half), time to profitability (4.2 years), gross margins, and more.
.png)
Everyone talks about the end of the era of ‘easy money.’ But nobody’s talking about how well startups have adapted. Founders aren’t waiting around for handouts. They’re grown far more resilient and rapidly learned to operate with intention.
When funding dropped, startups grew more efficient
Startups slowed hiring, delayed nonessential spending, and focused more closely on converting existing demand.As a result, median burn-to-growth ratios declined steadily.
.svg)
.svg)
Startups reached profitability faster than you’d expect
Median time to profitability is 4.2 years. One-fifth of startups in our dataset were already profitable and another 18% were close to it.
.svg)
Margins coincided with more hiring
You might think that comapnies saved their margins by running leaner, but our data shows the opposite. Startups with the best margins tended to hire more.
.svg)
This report offers a masterclass in translating capital into operating outcomes.
We’ve helped companies raise a collective $9 billion
