A new white paper from growth marketing agency Solid Water and investor relations consultancy NOTWICS reveals a striking disconnect between venture capitalists’ understanding of startup marketing challenges and their willingness to act on them, highlighting a missed opportunity to de-risk investments and accelerate returns.
Based on a survey of 183 UK-based VCs, the report finds that over two-thirds (69%) have seen poor marketing hinder a portfolio company’s ability to scale, yet only 23% currently engage a marketing expert or partner. The data points to an industry-wide reluctance to treat marketing as a strategic lever, despite overwhelming recognition of its importance. This hesitance is further backed up by the fact that only 15% of VCs feel confident evaluation marketing strategy during due diligence.Â
This data adds weight to broader research showing that marketing investment has a measurable impact on startup outcomes. A 2024 report from Deloitte found that startups allocating over 20% of their post-Seed budgets to marketing and PR grew 2.6x faster than those that did not, and were 3.4x more likely to reach their Series B round. Additionally, a study published in the Harvard Business Review showed that portfolio companies with strategic brand-building support delivered an average internal rate of return (IRR) 15–25% higher than those that focused solely on product development or engineering talent.
61% of VCs cite lack of clear customer acquisition strategies as a critical barrier to startup growth.
- 69% have witnessed marketing failures directly impact scale-up potential.
- 62% assess startups based on customer retention and lifetime value, yet many founders remain overly focused on top-of-funnel tactics.
Only 15% of VCs feel confident evaluating marketing strategy during due diligence.
“This is an imperative for the venture capital industry,” says Daria Partas, Co-founder of Solid Water Growth Marketing Agency. “Sustainable growth is not a given, and for VCs to consistently generate returns and build successful portfolios, they must ensure that invested capital is deployed effectively by their portfolio companies. Our experience at Solid Water has shown us that while due diligence is crucial, integrating a growth partner with a proven track record from the outset is equally vital. We frequently encounter brilliant technology companies raising Seed or Series A rounds with profoundly inadequate marketing plans that undermine their growth and market adoption. It’s disheartening to see capital wasted on initiatives that deliver no tangible value or growth. Aligning the incentives of startups, VCs, and marketing agencies is essential to rectify this.”
“This research highlights the untapped potential of strategic marketing to drive startup success,” adds Chris Lowe, founder of NOTWICS. “My key survey takeaway is that many VCs get growth marketing wrong, but admit they need to fix this with the majority of their portfolios. However, they generally don’t apply the right level of resource and expertise to fix this. Most founders also accept that they also need help and it. LPs would have cringed if they’d heard some of the perspectives! But the golden conclusion is if you wisely spend budget on marketing and engage the right partner then you stand to succeed and make more money! Marketing agencies must also stand up to the challenge and shift their mentality from being a delivery arm to becoming a strategic partner with vested interests in the startup success. Everyone is set to benefit from this.”
While the white paper focuses on marketing as a lever for startup growth, others in the ecosystem argue that communications and media relations deserve a place at the strategic table too.
Chris Wilson, founder of creative and communications consultancy Mint Gecko, comments:
“In the rush to scale, too many startups overlook the power of reputation. Strategic PR and media relations aren’t just about coverage – they build trust, attract talent, and open doors to partnerships and capital. At Mint Gecko, we’ve seen firsthand how early investment in credible, consistent storytelling can deliver real commercial returns. Some of the smartest VCs already champion this approach across their portfolios – but despite clear data and success stories, it’s still a tough sell. Founders and investors alike need to rethink PR not as a luxury, but as a core growth function from day one.”
The white paper recommends that VCs:
Build deeper marketing scrutiny into their due diligence processes;
- Provide portfolio companies with access to experienced growth partners;
Explore equity-based engagement models to better align incentives between startups, agencies, and investors.
About Solid Water Growth Marketing Agency
Solid Water is a London-based growth marketing agency built specifically for high-growth startups. It provides senior-level marketing expertise and execution capabilities to help early-stage companies scale effectively and achieve sustainable growth.
https://solidwateragency.com/
About NOTWICS
NOTWICS is a leading investor relations consultancy in the UK, specialising in helping businesses effectively communicate their value proposition to investors.
https://notwics.com/
About Mint Gecko
Mint Gecko is a consultancy and creative studio offering flexible, expert-led support across communications, brand, and business strategy. We specialise in solving complex challenges, delivering strategic outcomes, and integrating seamlessly into client teams – whether that means leading full-scale transformation or stepping in to execute specialist projects.
Mint Gecko is part of the ErBon Ventures Group, a portfolio of founder-led businesses focused on delivering high-impact, scalable solutions across strategic consulting, creative services, and innovation. As part of the group, we draw on a wider ecosystem of expertise and entrepreneurial thinking to provide agile, cost-effective support without the overhead of a traditional agency. Our approach is collaborative, senior-led, and focused on outcomes.
