Merger combines elite sales and marketing expertise to tackle declining early-stage funding success
Key Takeaways:
- Built to Address a Growing Challenge Amongst Startups: Scalewise is built to fix the challenge of rapidly slowing and decreasing graduation rates of early-stage UK startups beyond the seed round
- Strengthening the UK Tech Sector: As the UK navigates economic recovery and seeks to become a global tech leader, ScaleWise provides much-needed solutions to drive innovation, economic growth, and startup success.
- Data-Driven Diagnostics for Growth: ScaleWise will provide a diagnostic-led approach to aligning the entire go-to-market organisation to support startup growth and success.
- Strategic Expertise United: This merger unites the deep strategy and marketing expertise of Pug & Bear with ScaleWise’s B2B tech experience and unrivalled network of GTM experts, providing early-stage companies with the strategic insights and talent to scale faster.
London, UK, 10 October 2024
ScaleWise, a leader in supporting venture-backed tech companies to accelerate capital-efficient growth through go-to-market insights and talent, today announced the acquisition of Pug & Bear Ltd., leading SaaS marketing expert Munya Hoto’s marketing and strategy consultancy. This strategic acquisition addresses a mounting crisis in the startup ecosystem: the alarming drop in early-stage company graduation rates from Seed through to Series B funding.
Previously at 12.5% in 2020, two-year graduation rates from Seed to Series A for UK startups have plummeted to just 4.5%*. This sharp decline is not only slowing down the success of early-stage companies but also threatens broader economic growth, stalling job creation, innovation, and the long-term flow of investment into the tech sector. The ripple effect impacts the entire economy. Addressing this crisis is essential for founders and investors and ensuring the UK’s future economic resilience and leadership in the global tech ecosystem.
- 1 in 3 B2B tech companies report misalignment between sales and marketing.
- The average tenure of a GTM leader is just 17 months (for example, the average VP of Sales stays for just 19 months) with each failed hire costing up to 27x their salary.
ScaleWise’s new offering will feature:
- Data-driven diagnostics: A comprehensive, benchmark-backed evaluation of start-ups’ GTM strategy and plan. By analysing processes, data, and team performance, ScaleWise delivers actionable recommendations for sustainable growth.
- Tailored interim leadership solutions: Instant access to industry-leading GTM fractional leaders on an hourly, daily or project basis – providing hassle-free, low-risk and cost-effective expertise on demand.
- Permanent GTM team build-out: ScaleWise leverages its extensive scaling experience and network to provide start-ups with quick access to top GTM talent, building high-performing teams while avoiding common and costly hiring mistakes.
“We’re not just solving a graduation crisis; we’re reshaping how early-stage startups approach growth,” said Tom Glason, CEO of ScaleWise. “Munya Hoto and his team at Pug & Bear bring a fresh strategic vision to our mission, and together, we’re ready to guide the next generation of founders toward success.”
Munya Hoto, who steps into the role of Chief Strategy Officer at ScaleWise, where he will lead ScaleWise’s diagnostic product delivery, set the strategic vision and spearhead ScaleWise’s marketing community, added: “The data tells us that traditional approaches are no longer enough. Startups need smarter, faster, and more aligned sales and marketing operations to navigate today’s challenging funding landscape. Our combined expertise is the strategic force founders need to overcome these obstacles.”
Support from the Venture Capital Community and Customers
Notion Capital, a prominent backer of high-growth startups, strongly supported the ScaleWise and Pug & Bear merger. “As a serial founder and member of the VC community, I do see the graduation rate challenge with many early stage startups struggling to secure additional funding in order to scale. Having known both Tom and Munya for over 25 years combined and seen them operate at this stage, I believe this merger is a powerful and important much-needed innovation in the market.” said Chris Tottman, Partner at Notion Capital.
“With ScaleWise and Pug & Bear joining forces, startups will have the right sales and marketing expertise to navigate the funding landscape successfully. We’re excited to see the impact this powerhouse team will have.”
Live-EO, a fast-growing software company specialising in satellite data analytics, is already benefiting from the combined expertise of ScaleWise and Pug & Bear. “Working with ScaleWise and Munya has transformed our approach to both sales and marketing. Their strategic insights and execution have been crucial in accelerating our demand generation and ultimately our growth,” said Sven Przywarra, CEO of Live-EO.
