Top 5 Signals of Healthy Startup Growth from Public Data

Angel investors need to distinguish hype from genuine traction. This guide explains five concrete growth signals visible in public data; Companies House filings, hiring patterns, market activity; that indicate early-stage UK startups are gaining real momentum.

Signal 1: Revenue Growth in Filed Accounts

What to look for:
The strongest traction signal is filed accounts showing increasing turnover year-over-year.

• Revenue trajectory: Compare revenue across 2-3 years if available
• Growth rate: 2-3x annual growth typical for healthy early-stage startups
• Burn rate: Growing revenue + controlled losses = sustainable path

Where to find: Companies House accounts (CS01 confirmation statements include turnover for micro-entity companies; full accounts show detailed P&L)

Investor interpretation:

• Revenue growth validates product-market fit
• 100% YoY growth in seed stage = strong signal
• Declining revenue despite hiring = red flag (market rejection or customer churn)

Limitation: Many startups file minimal accounts under micro-entity exemption. Request management accounts or Cap table details for deeper diligence.

Signal 2: Recent New Director Appointments with Relevant Experience

What to look for:
Companies House director changes reveal strategic moves and investor confidence.

• New executive appointment: Experienced operator joining board (VP Finance, VP Sales, etc.)
• Relevant background: New director has sector experience or track record scaling companies
• Timing: Board hire 2-3 months before funding announcement common

Where to find: Companies House director information, verify background via LinkedIn

Investor interpretation:

• Investor-appointed director = external investor confidence
• Experienced board members = founders raising capital or planning scale
• Director removal or founder resignation = potential governance problem

Action: Check new directors' LinkedIn to verify experience. Board quality reflects investor quality.

Signal 3: Active Hiring Across Multiple Departments

What to look for:
Expanding team indicates confidence in funding and business model.

• Sales hiring: Multiple job posts for business development, account executives
• Engineering hiring: Senior technical hires suggest product roadmap clarity
• Finance/operations hiring: VP Finance or Operations signals next funding round
• Geographic expansion: Job posts in new cities = market entry

Where to find: LinkedIn company page, Indeed/Glassdoor, company careers website

Investor interpretation:

• Founder only hiring after securing funding = responsible capital allocation
• Hiring freeze = running low on cash (verify with Companies House filings)
• Over-hiring without revenue = potential burn rate problem

Timing signal: 2-3 months of continuous hiring = confidence in next 12-18 months of runway.

Signal 4: Stable Founder Equity and Cap Table Clarity

What to look for:
PSC (Persons with Significant Control) register shows ownership stability.

• Founder PSC positions: Founders still hold 20%+ equity after funding
• No recent dilution: PSC hasn't changed hands unexpectedly
• Clear cap table: Nominee structures hidden, actual owners transparent
• Clean share history: Orderly funding rounds, not messy equity negotiations

Where to find: Companies House PSC register (free)

Investor interpretation:

• Founders owning significant equity = skin in the game (good signal)
• Recent PSC removal or extreme dilution = potential founder conflict
• Complex nominee structures = difficult negotiation or hidden disputes

Action: Request cap table detail if PSC changes recently. Understand founder incentives.

Signal 5: Consistent Fundraising Timeline and Investor Pedigree

What to look for:
Funding history reveals investor confidence and realistic growth expectations.

• Funding cadence: Funding rounds 12-18 months apart (realistic runway planning)
• Investor quality: VCs, angels, or corporate investors in the round
• Cheque size progression: Seed → Series A amounts increasing appropriately
• Investor repeat: Angels or VCs investing in multiple rounds (confidence validation)

Where to find: Crunchbase (cross-reference with Companies House PSC register for cap table verification)

Investor interpretation:

• Regular funding rounds = market confidence in business model
• Long funding gaps = may indicate difficulty raising (check cash position)
• Repeat investors = prior investors believe in progress enough to invest again

Red flag: Company claims "£5m funding" but Companies House shows tiny cash position. Verify funding actually received.

Combining Growth Signals: The Complete Picture

A startup showing genuine growth momentum would have:

1. ✅ Filed accounts showing revenue growth or clear path to profitability
2. ✅ Recent director appointments with relevant scaling experience
3. ✅ Active hiring across 2+ departments matching stated roadmap
4. ✅ Stable founder equity positions showing founder confidence
5. ✅ Realistic fundraising timeline with quality investor pedigree

Investment signal: 4-5 signals present = growth company ready for angel backing or Series A.

Caution signals: 1-2 present = may be pre-revenue or struggling; more due diligence needed.

Free Tools for Growth Signal Tracking

No subscriptions required:

• Companies House: Check accounts for revenue, filing dates, director changes
• LinkedIn: Monitor company page for hiring posts and team growth
• Google Alerts: Track news, press, and market mentions
• Crunchbase: Cross-reference funding claims with Companies House data
• Glassdoor: Employee sentiment provides context on team stability

Summary

Early-stage investors can identify genuine startup traction by tracking public data signals:

• Revenue growth in Companies House filings
• Strategic board appointments of experienced executives
• Active hiring across multiple departments
• Stable founder equity and cap table clarity
• Quality fundraising timeline with respected investors

These signals combined indicate a startup with real momentum, founder confidence, and investor backing.

Ventur compiles these signals into evidence-linked reports for angel syndicates. Request a growth assessment.

Questions? Email [email protected]