How does Beauhurst select Stages of Evolution?

We categorise companies into stages of evolution using over 40 proprietary criteria, which vary based on complexity of intellectual property. No criterion is enough to determine stage of evolution, so we take a balanced view with each decision. Rarely, a company may skip a stage, going from seed to growth, depending on how it's doing.

We don't classify companies by series A/B/C etc. which only relays the number of institutional rounds a company has completed – we go into more detail elsewhere. Our classification is also more informative, indicating risk and lifecycle stage.

Stages of evolution	Applicability criteria	What a typical company would look like
Seed	As a rough guideline: a youngish company with a small team, low valuation and funding received (low for its sector), uncertain product-market fit or just getting started with the process of getting regulatory approval. Funding likely to come from grant-awarding bodies, equity crowdfunding and business angels.	A one-year-old software company with three employees, product in private beta, £50k in funding and £200k pre-money valuation. A three-year-old pharmaceuticals company in pre-clinical trials with £2m in funding and £4m pre-money valuation.
Venture	As a rough guideline: a company that has been around for a few years, has either got significant traction, technology or regulatory approval progression and funding received and valuation both in the millions. Funding likely to come from venture capital firms.	A hardware company with a first product out and some revenue. A restaurant chain that expanded from one branch to five.
Growth	As a rough guideline: a company that has been around for 5+ years, has multiple offices or branches (often across the world), has either got substantial revenues, some profit, highly valuable technology or secured regulatory approval significant traction, technology or regulatory approval progression, funding received and valuation both in the millions. Funding likely to come from venture capital firms, corporates, asset management firms, mezzanine lenders.	A materials technology with lots of patents that counted multiple governments and defense companies as clients on multi-year contracts. A manufacturing company with factories in 5 countries, millions in revenue and some profit.
Established	As a rough guideline: a company that has been around for 15+ years, or 5-15 years with a 3 year consecutive profit of £5m+ or turnover of £20m+. It is likely to have multiple (often worldwide) offices, be a household name, and have a lot of traction. Funding received, if any, is likely to come from corporates, private equity, banks, specialist debt funds and major international funds.	A hundred-year-old family-owned retail company with stores in many countries, millions in revenue and profit. A twenty-year-old software company, with large revenues and some profit.
Exited	The company has done an IPO or been acquired. (We do not consider MBOs to be exits, i.e. reasons to stop tracking companies, but rather a trigger for starting to track a company.)	A company that listed on AIM. A company that was acquired by a trade buyer.
Zombie	The company has met one or more of these conditions: The company's website and/or social media presence show prolonged neglect. The company’s key people have all left the company and it appears to have no employees. The company has appointed administrators or liquidators. The company’s status in Companies House is dissolved but the company still appears to be active. Merely doing a down-round is not by itself a reason for us to class a company as 'Zombie'. Also a legal entity may not be trading, because it is a holding company, but this doesn't necessarily mean we'd classify the company overall as Zombie stage if its subsidiaries are doing their thing normally.	A company that used to update its website’s news page and/or post on social media often but has not done so for 6 months, or that its website and/or social media pages are no longer available. A company that used to have employees on its LinkedIn profile but now has 0, and the LinkedIn profiles of all key people show them moving on from the company. A company that has been taken to court by its creditors, or has entered voluntary liquidation or administration. A company whose legal entity has been dissolved but appears still to be trading, perhaps only under a foreign legal entity.
Dead	The company has met one or more of these conditions: The company has definitively ceased all activity. The company has dissolved in Companies House with no activity. The company, or its assets, have been acquired in a distressed deal. The company has been at Zombie stage for a prolonged period of time. The company has relocated its primary location outside of the UK.	A company that has announced on its website that "It was a fun ride but it's over, folks". A company whose ultimate parent has been formally dissolved in Companies House with no signs of activity. A company that has been acquired out of administration. A company that has been at Zombie stage and shown no sign of activity for a minimum of 6 months. A company whose founder has announced the opening of a new head office which is abroad.

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