At Zubr Capital, we meet with hundreds of ambitious tech startups and founders. Every interested company has the vision, grit, and potential traction to succeed in the industry, but only around 4% make it through the Series A or Series B stages with our process. 

To be clear, it's not that the other 96% lack any notable talent or unique ideas. We have turned down many successes with impressive stories and technologies. Series A cannot be viewed only through potential. It is about finding companies that have sustainable growth backed by data, combined with a strong vision and readiness. Here is some insight into how we differentiate every investment.

The Pattern of Premature Scaling

An aspect that investment companies learn quickly, which others often overlook, is the power of a founder’s story. They are natural storytellers who understand how to set the stage and build on a foundation. Most have already secured $1 to $2 million in seed capital, often with only minimal proven revenue, but an incredibly compelling pitch deck. That will attract early adopters, decent talent, and a few wins, so everything seems on track. 

The truth is, the moment money hits the account, a company’s burn begins. Teams love to grow quickly to fulfill marketing and R&D budgets that balloon almost as fast. Soon, the monthly burn reaches $100,000 or more, encouraged by seed investors who love hyper-growth. 

The reality of these early stages is that revenue tends not to scale as rapidly as spending. Prolonged sales cycles and higher customer acquisition costs (CAC) eat into any funding, while teams are left focusing on refining a product-to-market fit. 

In this cycle, growth begins to slow while expenses remain at a peak. Founders rush to secure new capital, but instead of using these funds to accelerate growth, assets are allocated for survival. That is where we often find the first red flags. Instead of $300K in MRR, they only have $100K in ARR. CAC is inconsistent, and unit economics haven’t been proven over the longer term. The ask turns into $10 million at a $100 million valuation. 

All of these indications demonstrate the company hasn’t built the repeatable business engine we at Zubr want to see. They’ve gone from an engaging storyline to a “zombie” business. One that isn’t dead, but also isn’t growing. The simple matter is that all the financials cannot support the current funding narrative. It’s a cycle we’ve seen repeatedly. 

What the Other 4% Get Right

The companies we choose to invest in tend not to be the “flashiest.” They may have a few odds and ends that appeal to a larger market, but what makes them stand out is balanced discipline. Such founders clearly understand what early momentum means and how to transform that into scalable traction. 

Teams that place growth intentionally validate unit economics early. LTV, CAC, and churn cease to be guesswork or slides on a screen and instead get verified and used as measurable benchmarks. The chaos of the funding lifecycle we so often see fades, and a scalable system of sales, R&D, and marketing all operate with continuity and business resilience. 

These companies also understand how to meet investors where we are. They offer realistic valuations, grounded growth plans, and transparency that demonstrate what is working, what needs attention, and how funding can make a difference. While we don’t expect perfection in these details, we do demand clarity. 

Most importantly, the 4% we seek out has a plan in place for when things slow down. They automatically "course correct" as early as possible, highlighting an adaptability that balances ambition with sustainability, or more precisely, readiness. 

Scaling Isn’t a Race, It’s a Sequence

As a growth-stage investment fund focused on supporting tech startups and companies, especially those poised to expand into international markets, we’re not necessarily looking for the loudest pitches or fastest spenders. We want business engines that work. Companies built to last, not burn out early. We want founders to secure Series A funding that will scale well. 

The ability to acquire customers using a sustainable yet flexible process, manage capital responsibly, and grow without overextending, while relying on data-driven decision-making, signals our interest. That difference in timing, pacing, and proof is what makes for a worthwhile partnership with Zubr Capital.