Why startups fail to scale… and how to fix it

Half of our clients at mad Invest are startups and scaleups . We see every day the difference between those who successfully raise funds and those who remain stuck. Spoiler alert: it's not always where you think it is.

Raising funds is the ultimate challenge for many startups. Yet, despite a solid product or a promising market, many fail or stagnate. Why?

The answer is simple—but rarely emphasized: the real obstacle is the team.

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Scaling is much more than raising funds

Many people associate scaling with a simple fundraising step. In reality, scaling is about successfully moving from a small, agile team to an organization capable of rapid growth without sacrificing efficiency or quality.

But this is where many people stumble.

The trap produces "perfect"

The classic mistake founders make? Thinking that as long as their product is revolutionary, growth will follow naturally. Except that even a disruptive product can't grow on its own. You need a solid team, tailored processes, and a scalable organization. Investors and clients alike first look at the people behind the project.

An underestimated team, a real obstacle

A startup is first and foremost about talent. Not just a CEO or a CTO, but key profiles: sales, marketing, product, tech, operations, HR, etc.

Many startups lack the right profiles for the stage they are at.

For example :

• Difficulty in quickly recruiting qualified tech profiles

• Lack of anticipation of HR needs according to growth phases

• Excessive time spent by managers and C-level on recruitment

• Artisanal processes, poorly equipped and difficult to scale

• Salary inflation for strategic tech and sales profiles

This mismatch hinders growth, impacts quality and ultimately discourages investors and partners.

The vicious circle of lack of resources

A startup that hasn't yet scaled sufficiently doesn't have the resources to hire. Without the right hires, growth slows. It loses its attractiveness to investors. And so on. This vicious cycle blocks many entrepreneurs, who struggle to take the next step.

Recruiting in a startup is complicated

Competition for talent is fierce, especially in tech.

But recruiting for a startup isn't like recruiting for a large company: you need speed, tailor-made solutions, and people who can work with uncertainty and constant change.

Founders rarely have the time or HR skills to do this.

Culture and organization, often neglected

A team is also a culture.

A scaling startup must think about:

• A clear and scalable organization

• A strong culture that attracts and retains talent

• Smooth communication between teams

Many people forget this aspect, which has a direct impact on performance and attractiveness.

Insufficient preparation for field and international realities

Another major obstacle that we observe:

• Poor preparation of talents for the reality on the ground once posted abroad

• Teams poorly prepared for rapid changes in their profession

• Loss of operational efficiency during transition periods related to recruitment and integration

These flaws are costly in terms of productivity and turnover.

How does Mad Invest break this vicious circle?

At mad Invest, we don't just put money on the table.

We're investing more than €2 million in around fifty hand-picked startups. But most importantly, we're investing in their teams.

• More than 100 talents placed in these startups, adapted to their real needs

• Tailor-made HR support , with coaching, recruitment, training

• Access to our exclusive mad Connect network , which opens doors and creates synergies

Win-win at the heart of our model

We truly believe in the projects we invest in.

Because we are fully involved, we have every interest in building the best teams.

This is not just a financial investment, it is a win-win growth partnership.

The results speak for themselves

• More than 50 startups supported

• More than 100 talents recruited

• A scaling rate 30% higher than the market average

Our advice to founders

Before thinking about scaling, ask yourself the right questions:

• Do I have a team capable of meeting the challenges of the next stage?

• Do I anticipate and structure my HR needs?

• Am I attracting and retaining the right talent?

• Do I have a clear and agile organization?

• Is my team ready to adapt to rapid market and international changes?

Without these answers, scaling risks being a headache.

In short

Scaling isn't just about money.

It is a human, organizational, strategic challenge.

At mad Invest, we're here to support this growth, investing in your project... and in the talent that will make all the difference.

Want to scale quickly, with the right team and the right network? Contact us.