Offering employees stock options and building good local and international networks are key to successfully scaling startups, according to a new report. The Local Connectedness Index measures the size, density, and quality of a startup’s local network. Early-stage startups with a higher Local Connectedness Index see their revenue grow twice as fast as those with the lower Local Connectedness Index. Scaleup success rate clearly increases with “Global Connectedness”, and startups that develop a high level of Global Connectedness have a 3.25 times higher chance of scaling than those with a low level. Out of all current scaleups, a third were founded by serial founders, and founders who have previous hypergrowth experience have an 85 per cent higher scaleup rate compared to founders without this experience.

Source: The North Africa Journal October 02, 2023 09:03 UTC