Scaleups

Scaleups are companies that have moved beyond the early startup phase and are experiencing rapid expansion. While there is no universal definition, scaleups are typically characterized by sustained high growth in revenue and/or employment over several years, often defined as at least 20 percent annual growth over a three-year period. They sit between startups and mature large enterprises, and many operate with scalable, repeatable business models and significant market opportunities.

Key features include a technology-enabled or data-driven business model, repeatable sales processes, and a focus on scaling customer acquisition, product development, and international expansion. Scaleups typically rely on recurring or high-margin revenue, invest in talent and management systems, and seek growth capital to fund expansion.

Common challenges are organizational complexity, governance and compliance, culture retention, and the need for capital, skilled managers, and new markets. Rapid hiring can outpace HR, and expanding into new regions raises regulatory risk, supply chain, and customer support considerations.

Funding and policy contexts vary; scaleups often rely on venture capital, private equity, or reinvested earnings. In many regions, public programs and private sector networks aim to improve access to capital, talent, and markets to sustain scale. Notable ecosystems include initiatives that track growth and provide scale-up support.

Impact and metrics: Scaleups contribute to job creation, productivity gains, and innovation, but definitions and data can differ across regions. Analysts emphasize revenue growth, employment growth, and unit economics as indicators of sustainable scaling.