From startup to scale-up: How to make the transition successfully?

For many innovative startups that are beginning to see success and experiencing strong growth, the question of how to evolve the startup’s structure arises. Adaptability, the ability to reinvent itself and innovate, and dynamism are the typical strengths of a startup. The challenge here is to preserve these strengths while ensuring the young company’s healthy development to successfully achieve scale-up status.

Frédéric Mazzella, co-founder of BlaBlaCar, reveals the three key strategic points to consider and monitor to successfully navigate this delicate transition.

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What is a scale-up?

As a startup grows, the question of what structure to build inevitably arises, and many view the scale-up as the model to aspire to and the ideal solution. The term “scale-up” thus redefines the concept of the French-style SME, which challenges market norms and is seen as the ideal company of the future.

The term “scale-up,” which means to increase or expand, refers to the “post-startup” stage. The definition is not clearly established or set in stone. However, it is generally accepted that a scale-up is a startup that has grown significantly, on a continuous basis, both internally and externally, and that continues its strong growth after having identified long-term prospects that ensure its relative stability… Unlike a startup, which is a young company that began with a good idea and an innovative business plan but whose operations have not yet become sustainable. In other words, unlike a scale-up, a startup still needs to establish itself on a stable footing.

When we think of a startup, we picture open-plan offices and a relaxed atmosphere—yet this doesn’t prevent employees from working on innovative projects with a revolutionary perspective. We picture employees with a low average age—perhaps recent graduates—who are characterized by their high adaptability, dynamism, and appetite for risk. It is this atypical structure that is difficult to maintain as the company grows and the need for structuring, organization, and optimization becomes apparent.

France is currently home to more than 500 scale-ups, including the well-known ride-sharing platform BlaBlaCar. Operating in 22 countries, the company is now valued at $1.66 billion, thanks in part to a €97 million funding round in April 2021. It has 700 employees and over 100 million members worldwide, and holds a dominant position in its market. Yet it’s hard to imagine its early days, when four idealistic students spent their weekends and evenings holed up at their parents’ homes, sketching out the blueprint for what would become this incredible success story.

Blablacar is now considered the gold standard for businesses built on the same model. Frédéric Mazzella, co-founder, reveals the three strategic pillars that enabled him to ensure Blablacar’s long-term success when the company was still in its startup phase. At the “Startup Summit” organized by Challenges magazine, the renowned entrepreneur focused on these three key points, which he considers essential for any startup aspiring to grow.

The three key strategies for successfully scaling up

1. PRESERVING ONE'S IDENTITY

It is important to preserve the company’s DNA—that is, its culture, values, and norms—as well as the close relationships among employees and with customers and the company’s network. In other words, this means protecting informal initiatives and ensuring that no specific measures are imposed by force without respecting the startup’s identity.

2. HAVE A COHERENT STRATEGY

The growth strategy must be well-defined and coherent. This means, on the one hand, that the startup must continually find ways to ensure its growth both internally and externally—through international expansion, hiring highly qualified employees, securing funding, and so on.

3. MAINTAIN AN ENTREPRENEURIAL MINDSET

An entrepreneurial mindset is essential for sustaining the value of one’s products, while maintaining a desire to improve them and oneself, and a commitment to growth. An entrepreneurial mindset is reflected in the ability to reinvent oneself, launch ambitious projects, and challenge one’s own assumptions—all hallmarks of today’s startups.

Finally, according to BlaBlaCar’s co-CEO, effective communication is essential—not only to cultivate a positive image for the company and its offerings, but also to convince and rally stakeholders around the company (employees, investors, customers, and others). A successful scale-up is also an organization that has managed to retain its startup spirit, one that knows how to stay organized despite the abundance of ideas and projects, while keeping priorities in mind.

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