More mature than initially assumed
“Another surprise is that impact startups appear to find progressing from the earlier stages to more mature business operations easier than traditional tech startups,” says Mikkel Skott Olsen. The report reveals, for example, that impact startups progress faster from the early (seed) financing rounds to more mature rounds (series A) where venture funds typically step in.
Figures from Danske Bank’s recruitment platform, the HUB, show that impact startups also appear to have an easier time attracting staff – receiving 25% more applications than traditional startups.
“Much has been said and written about millennials being keen to have work with a purpose. This is clearly documented here,” says Mikkel, who also points out that the ability to create the right team is a key startup success factor.
Green Growth – crucial for the climate
One particular focus area for the report is the Green Growth sub-segment. These are startups that focus on the environment across five sectors: energy, agriculture/food, production, property/infrastructure and transport. The area accounts for around half of the impact startup segment and so is very significant.
“The report cannot completely discount the myth that Green Growth companies are heavy on production apparatus and R&D. Around 50% of Green Growth companies apparently live up to this and 25% of them also have a high go-to-market risk. Though I’m pleased that the remainder work with a proven model, which all else being equal means they should be able to attract traditional tech investors,” says Mikkel.