ScaleWise acquires Pug & Bear to boost UK startup growth

ScaleWise has announced its acquisition of SaaS consultancy Pug & Bear in a move aimed at tackling the declining rates of startups graduating from Seed to Series A funding in the UK.

Research indicates a troubling trend where the percentage of startups securing Series A funding within two years has decreased dramatically from 12.5% in 2020 to just 4.5% in 2022. This decline is seen as a threat to innovation and economic growth within the UK tech sector.

The acquisition of Pug & Bear is intended to address these issues by aligning go-to-market (GTM) strategies for startups. Many companies experience misalignment in sales and marketing functions, which can hinder their success in securing necessary funding. ScaleWise's research notes that one in three B2B tech companies face this issue.

ScaleWise plans to leverage Pug & Bear's marketing and strategy expertise to improve startup graduation rates through a diagnostic-driven approach. This strategy will incorporate data analysis and performance evaluation to offer actionable recommendations for growth.

A significant part of this new offering is the introduction of tailored interim leadership solutions, allowing startups access to high-level GTM expertise on a flexible basis. Additionally, ScaleWise will focus on building permanent GTM teams to help companies avoid costly hiring mistakes.

Tom Glason, CEO of ScaleWise, remarked, "We're not just solving a graduation crisis; we're reshaping how early-stage startups approach growth. 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 takes on the role of Chief Strategy Officer at ScaleWise, said, "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."

The strategic merger has gained support from within the venture capital community, as pointed out by Chris Tottman, Partner at Notion Capital. Tottman commented, "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."

Startups like Live-EO, a company specialising in satellite data analytics, are already experiencing the benefits of this collaboration. Sven Przywarra, CEO of Live-EO, stated, "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."

The partnership between ScaleWise and Pug & Bear reflects a growing need for startups to refine their strategies in a complex funding environment. By focusing on aligning sales and marketing through expert advice and comprehensive solutions, ScaleWise aims to support the future success and growth of the UK's tech industry.