What challenges are high growth startups facing today?

Managing sustainable global growth: High-growth startups are expanding globally at an increasingly early stage. Establishing a business in new countries is challenging. It requires a detailed knowledge of the many different rules and regulations involving legal, employment, accounting and tax.

How PwC can help: Through PwC's global network of professionals, we provide advice and feet on the ground across the world to help you on your sustainable growth journey.

Investor pressure for fast returns: Startups are increasingly under pressure to demonstrate success in achieving milestones set by the investors and the Board.  In the early stages, these milestones are tied to key performance metrics such as users or customers, bookings, revenue, and ultimately by measures of profitability or positive cash flows.

How PwC can help: PwC provides a range of services from strategy to execution throughout a company's growth cycle including strategic advice on business models, helping develop the right KPIs, and ensuring costs are aligned with growth.

Growth strain on resources: Rapid growth and steep growth trajectory are positive for startup valuation, but it can come with potential disadvantages including additional pressure on infrastructure, people, and resources.

How PwC can help: We provide advice on controls, processes, systems implementation and other considerations to help growing businesses continue to innovate while managing the chaos within the startup environment.

 

 

Indirect tax: For many businesses, particularly for those re-inventing established industries as well as many other digital services businesses, the landscape around the state and local taxes in the US, as well as VAT and GST in other countries, is changing. Consequently, as tax jurisdictions re-interpret their rules around these new business models, many businesses are exposed to significant back taxes, interest, and penalties as well as additional ongoing compliance burdens.

How PwC can help: We can help companies manage these pitfalls by identifying the appropriate tax treatment for their business model to help them evaluate the risk, and be in compliance with the jurisdictional rules and regulations in the states and countries where they operate.

Revenue Recognition: Startups are finding that the new revenue recognition standards' impact goes beyond accounting and extends to their entire business model including sales and marketing, as well as their information systems that support those functions.

How PwC can help: We can help start-ups proactively respond to the pervasive impact of these changes on their people, policies, processes, and systems.

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Alan O'Rourke
Northeast Emerging Company Services Leader
Tel: (617) 530-5726
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David Silverman
National Emerging Company Services Practice Co-Leader
Tel: +1 (646) 471 5421
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Gina Gin
Partner - Washington D.C. Metro
Tel: (703) 918-3681
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Danny Wallace
National Emerging Company Services Practice Co-Leader
Tel: +1 (408) 817 5030
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Christie Good
Partner - Southern California
Tel: (213) 217-3212
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Stephen Somerville
Pacific Northwest Emerging Company Services Leader
Tel: (206) 398-3521
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Larry Westall
Assurance Partner
Tel: +1 (512) 708 5502
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Rob Ward
Partner - Rockies
Tel: (720) 931-7060
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