When considering ‘growth’, we look at a number of indicators to decide whether a company is going through substantial growth — these are our Growth Signals that we mentioned earlier.
Over half of the companies with a Growth Signal (57%) hit our 20% Scaleup Growth Signal. This is our primary indicator for growth as it shows us that a company is rapidly expanding. But we also looked at a number of other signs of growth.
From our data we can see that 21% of UK high-growth companies received equity funding. Equity funding is a crucial indicator of growth as it reflects investor confidence and provides the necessary capital for expansion.
Accelerators offer startups intensive, short-term programs that include mentorship, networking opportunities, and often some seed funding. Out of the companies we analysed, 4% attended an accelerator.
A significant 37% featured on a high-growth list. High-growth lists, such as the Inc. 5000 or Deloitte Technology Fast 500, are curated based on criteria like revenue growth over a specified period. Being featured on such lists provides external validation of a company’s growth and market potential. It also enhances the company’s reputation, making it more attractive to investors, customers, and potential employees.
We also took a look at which of these companies also hit one or more of our Innovation Signals. These are signals that tell us whether a company is innovating and standing out amongst similar companies.
One of our Innovation Signals is academic spinouts. These are companies formed to commercialise research and innovations developed within universities or other research institutions. Academic spinouts often have strong technical foundations and access to cutting-edge technologies. From our analysis of the UK’s high-growth companies, 0.8% of the companies are an academic spinout.
5.1% of companies with a growth signal have received a large R&D grant. Receiving research and development grants is a strong indicator of a company’s commitment to innovation.
Another one of our Signals identifies whether a company has a patent. Across the UK’s high-growth ecosystem, 6.5% of companies have a patent. Holding a patent is a clear sign of innovation, as it indicates that the company has developed a unique technology or process that is legally recognised and protected.
