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 hello@venturhq.co.uk