The 6 stages of a startup: what they mean for founders (in the Basel Area)

Building a startup rarely feels like a neat, linear journey. It is messy, iterative, and full of loops. Still, understanding the typical stages of a startup can help you see where you are, what to focus on next, and which type of support will move you forward.

In this article, we walk through six common startup stages. For each stage, we look at what usually happens, the questions you should be asking, and the kinds of support that make a difference.

If you are building a startup in the Basel Area, you will also see how our Launch service offerings can support you at each step, especially if you have a scalable venture in science and tech.

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The 6 startup stages at a glance

Every venture is different, but many startups move through some version of these six stages:

  • Stage 1: Idea and problem exploration
  • Stage 2: Validation and pre-seed
  • Stage 3: Build and early customers (seed)
  • Stage 4: Early growth and scaling foundations
  • Stage 5: Scale-up
  • Stage 6: Maturity, exit or renewal

Stage 1: Idea and problem exploration

What does this stage look like?

You are at the very beginning. You have one or more ideas, and a sense of a problem you want to solve, but nothing is fixed yet. You might still be employed or working on your idea in your spare time. Activities at this stage usually include:

  • Talking to potential users and customers.
  • Framing and reframing the problem.
  • Sketching early concepts or mockups.
  • Ensuring a good problem-solution fit.
  • Testing your own motivation and risk appetite.

Key questions at this stage

  • Is this really a problem worth solving, and for whom?
  • Why is this problem urgent now?
  • What is my unfair advantage as a founder or team?
  • What would have to be true for this idea to turn into a viable business?

Common pitfalls

  • Falling in love with a solution before understanding the problem.
  • Only talking to friends or colleagues instead of real potential users.
  • Ignoring regulatory or technical realities, especially in life sciences and healthtech.
  • Trying to plan everything too early instead of learning fast.

What kind of support helps

At this stage, you benefit most from:

  • Honest feedback from peers and mentors.
  • Exposure to real customers and industry experts.
  • Early training on topics such as value propositions, business models, and basic financials.
  • Light-touch validation of whether your idea fits existing support programs.
“Early on, your goal is not to defend your idea, it is to learn as much as you can about the world around it. The more honestly you explore the problem and the people who have it, the easier it becomes to let go of weak ideas and double down on the ones with real potential.”

If you are an aspiring startup founder in the Basel Area, you do not have to explore this stage alone:

  • Our VentureConnect program is often the right entry point for entrepreneurs at stages 1 to 3. It helps you refine your idea, understand your options and connect with the right people and programs for your next steps.
  • If your idea is in healthtech or techbio, the DayOne community and accelerator activities can help you test the problem with patients, healthcare professionals and industry stakeholders.
  • If you are exploring a biotech venture, you can start to learn what it takes to build an investable company by engaging with BaseLaunch, which supports breakthrough biopharma ventures in the Basel Area.

Stage 2: Validation and pre-seed

What does this stage look like?

You have narrowed down a problem and a target user group. Now you are focused on validating whether your idea has real potential. Typical activities include:

  • Conducting structured customer interviews or surveys.
  • Building and testing simple prototypes or minimum viable products (MVPs).
  • Estimating market size and pricing options.
  • Exploring early funding options such as grants, friends and family or pre-seed capital.

Key questions at this stage

  • Do customers care enough to change their behavior or pay for this solution?
  • Can we build this solution with the resources and expertise we have or that we can access?
  • What evidence will convince early investors, partners or accelerators?

Common pitfalls

  • Mistaking polite interest for real commitment.
  • Skipping validation in regulated sectors and assuming “someone will solve the compliance later.”
  • Waiting for the “perfect” prototype instead of learning from imperfect tests.

What kind of support helps

You will gain speed and confidence if you have:

  • Access to mentors who understand your sector and its constraints.
  • Structured coaching on validation techniques and lean experimentation.
  • Connections to early adopters and pilot partners.
  • Guidance on next funding steps and how to position your startup for pre-seed or seed rounds.
“The earlier you start talking to potential customers and end users, the better. Each honest conversation is a small experiment that tests your assumptions and gives you permission to adapt, pivot or grow your idea. The closer you stay to real world feedback, the more likely it is that your product will truly fit the people it is meant to serve.”

In the Basel Area, validation becomes more powerful when you plug into the local startup and industry ecosystem.

  • VentureConnect can support you with coaching and connections as you test your idea and decide how to move forward.
  • If you are working on healthtech or techbio solutions at the interface with pharma R&D, the DayOne Accelerator is designed to support high potential, early-stage ventures at this point in their journey.
  • The Digital Accelerator Basel supports early-stage tech startups that want to transform the local industry and have a clear link to the Basel region.
  • In the Jura region, innovators and SMEs can access acceleration and expertise through dedicated regional programs such as the InnoJura Accelerator, which connect industrial innovation with the manufacturing strengths of the Jura.
  • Finally, FoodHealth aims to promote high-tech innovations from sustainable agricultural technologies to health-promoting nutritional solutions.

Stage 3: Build and early customers (seed)

What does this stage look like?

You have validated the core of your idea and are now building a real product or service. You are moving from “does anyone care” to “can we deliver this reliably and start to grow”. Activities often include:

  • Building a more complete product or platform.
  • Running pilots or proof of concepts with early customers.
  • Bringing in first employees or formal co-founders.
  • Raising a seed round or significant non-dilutive funding.

Key questions at this stage

  • Can we turn initial interest into repeatable revenue?
  • Are we solving the right problem in the right way for our early customers?
  • What kind of team do we need for the next 12 to 24 months?

Common pitfalls

  • Building too many features instead of solving one problem extremely well.
  • Underestimating how long pilots and procurement take, especially with large corporates or hospitals.
  • Forgetting to document learnings and processes, which slows down scaling later.

What kind of support helps

The right support can help you avoid expensive mistakes:

  • Experienced mentors in your specific industry or technology.
  • Access to testbeds, clinical or industrial environments for pilots.
  • Guidance on legal, regulatory, intellectual property and quality topics.
  • Investor introductions and feedback on your funding strategy.
“The first paying customers are a reality check. They do not behave like the ideal users in your slide deck. The teams that grow from this stage are the ones that treat every pilot and every early contract as a structured learning opportunity, not just as a revenue win.”

The Basel Area is built for startups at this stage, especially in life sciences, healthtech and industrial innovation.

  • The DayOne Accelerator supports high potential early stage healthtech and techbio ventures that are ready to co-develop and test their solutions with industry and healthcare partners.
  • BaseLaunch works with promising biopharma ventures providing expertise, funding, and access to the Basel Area Life Sciences Supercluster network.
  • The Digital Accelerator Basel helps early-stage tech startups validate solutions with regional partners and move toward market readiness.
  • If you are not sure which path fits your startup best, VentureConnect remains your entry point to talk through your options and connect with the right program or partner.

Stage 4: Early growth and scaling foundations

What does this stage look like?

You have a working product and paying customers. Now you need to turn early traction into reliable growth. Key activities include:

  • Professionalizing sales and customer success.
  • Strengthening your core team and leadership.
  • Refining your unit economics and business model.
  • Expanding into new markets or customer segments.

Key questions at this stage

  • What do we need to standardize, and what should stay flexible?
  • Where do we invest first: product, sales, regulatory, operations or something else?
  • How do we balance growth with quality and compliance, especially in regulated sectors?

Common pitfalls

  • Growing sales faster than your ability to deliver or support customers
  • Entering new markets without understanding their regulatory or cultural specifics
  • Losing focus by chasing every opportunity instead of doubling down on what works

What kind of support helps

At this point, targeted support is valuable:

  • Access to experienced operators and sector experts.
  • Support in building strategic partnerships with key industry players.
  • Introductions to investors who understand your sector and growth profile.
  • Guidance on how to scale in or from the Basel Area into European and global markets.
“Early growth is often where startups discover whether they have built a product or a company. It is no longer just about adding features. It is about building simple habits, processes and roles that let you deliver the same value repeatedly without burning out your team.”

Basel Area Business & Innovation and its partners can support you as you lay down your scaling foundations:

  • If you are a healthtech or techbio venture graduating from programs such as DayOne or BaseLaunch, you remain embedded in a network of industry partners, investors and service providers in the Basel Area Life Sciences Supercluster.
  • Growth-stage startups in tech and industrial innovation can access networks, events and corporate partners across the Basel Area to test new products and secure reference customers.
  • You can tap into Basel’s cross-border position to access talent, customers and partners in Switzerland, Germany and France from one highly connected base.

Stage 5: Scale-up

What does this stage look like?

>You are now a scale-up rather than a classic startup. You have product market fit, a growing team and a need to expand operations, markets or both. Activities include:

  • Entering new countries or regions.
  • Building strong leadership and governance structures.
  • Adding new product lines or services.
  • Raising larger funding rounds to support expansion.

Key questions at this stage

  • How do we keep our culture strong while we grow?
  • Where should we locate new teams or facilities to balance cost, talent and proximity to customers?
  • Which strategic partnerships can accelerate our growth without creating heavy dependencies?

Common pitfalls

  • Scaling in the wrong direction or at the wrong pace.
  • Underestimating the complexity of multinational operations.
  • Losing your innovation edge as processes and structures become heavier.

What kind of support helps

Scale-ups benefit from:

  • Location advice and support for setting up new sites or functions.
  • Connections to international partners, clusters and investors.
  • Access to specialized talent pools in science, technology and operations.
“Scaling is not simply doing more of everything. It is deciding very clearly what you will do at ten times the size and what you will stop doing altogether. Without those choices, growth tends to create complexity faster than it creates value.”

Many scale-ups choose the Basel Area as a base for European growth or as a location for research and development, manufacturing or commercial hubs.

  • The Basel Area Life Sciences Supercluster site shows how companies at every stage of growth use the region’s talent, ecosystem, location and lifestyle as a multiplier for growth.
  • We can support you with insights into setting up new operations in the region, from R&D and manufacturing to commercial teams, and can connect you with partners, service providers and local authorities.

Stage 6: Maturity, exit or renewal

What does this stage look like?

You have built a mature business. At this point, you may be considering:

  • International expansion beyond your current footprint.
  • Strategic partnerships, acquisitions or mergers.
  • Preparing for an exit such as a trade sale or public offering.
  • Spinning out new ventures or products.

Key questions at this stage

  • What is the long-term strategy for this company and its owners?
  • How do we continue to innovate and avoid stagnation?
  • Which parts of our business could become new ventures or collaborations?

Common pitfalls

  • Becoming too risk averse and losing the founder mindset.
  • Missing opportunities to create new ventures or spin offs from internal innovation.
  • Underestimating the cultural and integration aspects of mergers and acquisitions.

What kind of support helps

At this point, support often looks more strategic:

  • Neutral advice on location strategy and expansion.
  • Access to corporate partners and innovation initiatives.
  • Support in exploring spin offs and collaborations with startups.
“Reaching maturity should not mean that curiosity disappears. The most resilient companies treat every new partnership, technology or market shift as a chance to rethink parts of their business, and to strategically create entirely new ventures from what they have already built.”

The Basel Area is home to both global life sciences leaders and agile mid-sized innovators. For mature companies and later stage scale-ups, the region can be a platform to:

  • Explore collaborations with startups and scale-ups through programs and initiatives that connect established companies with new ventures.
  • Set up innovation units, labs or pilot projects close to a dense life sciences and industrial ecosystem.
  • Engage with the wider Basel Area Life Sciences Supercluster to keep a pulse on emerging science and technology.

What to do next

If this article helped you recognize your current stage, the next step is to translate that insight into action.

1. Learn more about startup support in the Basel Area

Get an overview of how Basel Area Business & Innovation supports founders and startups through its Launch services and accelerators.

Explore startup support

2. Stay in the loop

If you want to hear about programs, events and opportunities for startups in the Basel Area, you can subscribe to our newsletter.

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At any stage of your startup journey, if you already know that you want to build in the Basel Area and would like to discuss your options, you can reach out to us for a conversation about your next steps.

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