Editor’s Note: This report is of great importance to cybersecurity, information governance, and eDiscovery professionals, as it highlights the systemic and structural challenges that tech startups face—especially those innovating in high-stakes, compliance-heavy industries. Understanding the mindset, limitations, and motivations of early-stage founders offers valuable context for enterprise buyers, legal tech vendors, and policymakers shaping Europe’s digital ecosystem.
Published by Slush—Europe’s foremost startup and venture capital gathering—this grassroots report, released in early May 2025, draws insights from over 600 founders. Slush is held annually in Helsinki, Finland, and the 2025 event is set for November 19–20. Beyond being a stage for investment deals and breakthrough technologies, Slush has become a strategic listening post for those invested in the future of innovation-driven economies.
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Slush 2025 Survey: Startup Struggles Expose Risk, Resilience, and Opportunities for Governance Pros
ComplexDiscovery Staff
The latest Startup Struggle Survey by Slush reveals that European startup founders are facing a tighter and more uncertain business environment in 2025. Based on insights from 607 early-stage founders, the grassroots report identifies fundraising and revenue growth as the most difficult hurdles, while talent retention and market traction remain stubborn friction points across the board.
Funding Still the Top Concern—But Growth Is Catching Up
While 58.1% of founders say fundraising is their biggest concern—down slightly from 63% in 2024—the sharpest spike is in revenue growth, up nearly 16 percentage points year-over-year. That uptick reflects a growing reality: raising money is no longer enough. Founders are under pressure to prove capital efficiency and show a viable path to profitability from the outset.
Only 18% of founders believe raising money would be easy right now, while 57% outright disagree. Compounding the challenge, a 6.6 percentage point decline in investor engagement signals that founders are having a harder time building relationships, even as they try to convince backers of their scalability.
Customer Acquisition: Visibility Without Traction
More than two-thirds of respondents report that identifying new prospects is relatively easy. But only 30% say converting those prospects is straightforward, revealing a critical disconnect. Go-to-market strategies, especially for younger companies, remain murky.
“It’s all trial and error,” one founder explained, underscoring a major theme in the survey—strategy gaps and execution struggles. Rising costs of customer acquisition and increased competition are stretching limited budgets, forcing startups to choose between development and sales.
Talent Shortage Lingers, Especially in Technical Roles
Hiring remains a constant challenge. While numbers remained flat from 2024, 20% reported difficulty recruiting technical talent, and 12% for non-technical roles; the struggle remains deeply felt. In AI, where demand is white-hot, startups find themselves in direct competition with tech giants offering bigger paychecks and more stability.
Yet, it’s not just about skills. Many founders cite cultural alignment, ownership mentality, and resilience as equally hard to find. “Skills can be taught,” one founder said. “Attitude can’t.”
Emotional Weight, But Enduring Resilience
Despite the difficulties, founder morale is holding strong. A large majority—81%—say they would still choose to start their company again. Even more (87%) believe their work should have a positive societal impact, showing that mission and meaning continue to fuel Europe’s startup scene.
In fact, 68% say they are confident in their team’s potential, and motivation among founders appears to be growing—there’s been a 6.8% increase in those reporting higher drive compared to last year.
Still, the toll is real. Founders described the journey as “running into a wall every day” and cited the stress of having to be a product manager, salesperson, and recruiter all at once.
Hope for Europe, If It Can Evolve
While challenges abound, founders remain hopeful. Slush’s report captures a growing belief in Europe’s potential to mature into a globally competitive tech ecosystem. Respondents pointed to a new generation of experienced, second-time founders and more engaged VCs with deep operational backgrounds.
Europe’s strengths—elite talent, ethical frameworks, and mission-driven values—are seen as the foundation for a different kind of tech model, one focused on sustainability and inclusivity. However, founders are quick to note persistent barriers: fragmented regulations, a cautious investment culture, and systemic bias against underrepresented groups.
Looking Ahead
Slush, which hosts the world’s largest startup event, says its 2025 focus will be squarely on solving the everyday pain points of founders. With 68.37% of startups still pre-funding, the report is a stark reminder of how many remain at the earliest stages, working without safety nets.
“This isn’t about sugarcoating the journey,” the report concludes. “It’s about meeting it head-on—with speed, velocity, and a deep respect for the people building the future.”
Implications for Cybersecurity, Information Governance, and Legal Tech Professionals
The challenges outlined in Slush’s 2025 Startup Struggle Survey have direct implications for professionals in cybersecurity, information governance, and legal technology.
Startups, especially in deeptech and enterprise software, are increasingly operating under financial strain while trying to meet rising expectations for secure, compliant, and privacy-conscious products. For cybersecurity vendors and legal tech providers, this presents both a risk and an opportunity. Early-stage companies often delay security investments or adopt inadequate solutions due to cost constraints—raising the likelihood of future compliance issues, data breaches, or legal exposure.
Meanwhile, the survey’s findings on founder mindsets—particularly the emphasis on ethical growth and sustainability—align with the growing demand for governance-by-design frameworks. Startups that embed compliance, data ethics, and transparency into their operations early will be better positioned to scale responsibly and attract institutional customers who require airtight regulatory postures.
Legal technology professionals, particularly those involved in contract lifecycle management, cross-border data flows, and AI governance, should view this moment as an opportunity to establish partnerships with startup teams from the outset. Providing scalable, founder-friendly tools that align with their lean operating models could foster long-term client relationships.
In a continent grappling with regulatory fragmentation and cautious capital, professionals in these fields can play a pivotal supporting role—helping startups not only survive the early grind but build durable, compliant companies from day one.
About Slush: Founded in Helsinki in 2008, Slush has evolved into one of Europe’s leading startup and tech events, uniting founders, investors, and operators to accelerate innovation across various sectors. With a focus on early-stage entrepreneurship, Slush convenes over 13,000 participants annually—including venture capital firms managing more than $4 trillion in assets—to explore breakthroughs in technology, product development, and responsible growth.
News Sources
- Slush Startup Struggle Survey 2025 | May 7, 2025 (Slush Newsroom)
- Slush 2025 | November 19 & 20, 2025 (Helsinki, Finland)
- Slush 2025 Event Information (Explore Slush)
- Insights from Slush’s 2025 Startup Struggle Survey (Tech.Eu)
- Where European Founders Struggle, Slush is Listening (Sesamers)
Assisted by GAI and LLM Technologies
Additional Reading
- What UK Law Firms Really Want: Procurement Insights from LegalTechTalk 2025
- When Founders Have Red Lines: Investing Beyond ROI at Latitude59
- Strategic Innovation and Ukraine’s Tech Frontline at Latitude59 and Dublin Tech Summit
- Beyond Borders: How Legal Strategy Shapes the Success Trajectory of Tech Startups
Source: ComplexDiscovery OÜ