What do startups need to succeed?

05 Aug 2025

Anyone who’s ever started a business (in any sector, but especially tech) knows it’s a rollercoaster. There’s excitement, uncertainty, and endless late nights. When we interviewed Kambis Kohansal Vajargah (Head of Startup-Services and Deputy Head of Founder‑Services at the Austrian Federal Economic Chamber), he distilled his experience into three key lessons on what startups truly need to thrive:

Industry-specific mentors
Flexible funding
Supportive community

At LEAP, we’re dedicated to creating all of those conditions for the startups that come to us. Here’s why.

1. Industry-specific mentors

Kambis suggested that generic advice rarely cuts it. Instead, startups excel with mentors who know their industry inside out. This is backed up by research – one 2025 report from McKinsey notes that private equity and venture partners are increasingly sought not just for funding, but also for “sustained operational transformation”.

Deep expertise from mentors can guide founders through common challenges (like pricing strategy or scaling) that are hard to get right when you’ve never done them before. So as part of our Startup and Scaleup Programme at LEAP, we’re matchmaking founders with mentors who can genuinely help them with the problems they’re facing.

2. Flexible funding options

Be under no illusion – funding isn’t everything when it comes to startup success. But when you are ready to raise, you need options that suit your business structure and scaling goals; because different startups go through different journeys.

“It’s unpredictable – so financing shouldn’t be rigid,” said Kambis.

A recent report from EU‑Startups highlights that just €12 billion of public funding has helped ignite €520 billion in enterprise value across 13,600 startups – and attracted a further €70 billion in private venture capital. That’s leverage in action.

At the same time, many EU-backed startups still face major challenges when it comes to scaling beyond Series A. Solving this takes more than capital; startups need to operate in an ecosystem that reduces friction rather than adding to it, with access to resources and funding that leave space for agility, adaptability, and risk-taking.

Stats from Growth List show that 44% of startups fold due to running out of cash, while McKinsey agrees that investor appetite for flexible vehicles (like evergreen funds) is on the rise. Rigid, debt-heavy models don’t give startups the flexibility they need.

That’s why the prize fund that startups can access through the LEAP Rocket Fuel Startup Competition is equity-free. We want to give incredible startups an opportunity to grow their own way.

3. A supportive community

As well as mentors, founders need peers. A strong startup community offers emotional resilience, partnerships and fresh ideas. Collaboration and knowledge-sharing helps you tackle barriers like regulation, finance, and talent sourcing. And equally importantly, it makes you feel less alone on the tough days.

You need to find your people – the ones who understand what you’re doing, because they’re doing it too. That’s why at LEAP we don’t just connect you with potential investors and mentors; we also enable networking between startups themselves.

Why these three pillars need to go together

You need all three of them.

Industry-specific mentors to help you navigate sector complexities and avoid strategy missteps.
Flexible funding to keep your business agile, resilient, and able to pivot.
A strong community to combat the isolation, stress and inertia that will lead to failure.

Together, they form a powerful safety net. With 90% overall startup failure rates looming, you’ve got to establish your advantage; and these three pillars allow you to do exactly that.

So if you’re a founder (or want to be one), ask yourself: