In an era where venture capital graduation rates have fallen to historic lows - with only 5% of seed-funded companies reaching Series A - founders and executives are facing unprecedented pressure to demonstrate sustainable growth.
Yet, when growth stalls, the typical response is panic-driven: throwing resources at undiagnosed problems, changing teams prematurely, or investing in new technologies without addressing underlying issues.
This reactive approach is precisely why ScaleWise’s recent webinar, “The Essential Five-Point GTM Diagnostic for Scaling Venture-Backed Companies in 2025,” delivered critical insights for founders seeking to navigate these challenging waters. Led by Tom Glason, CEO, and Munya Hoto, CSO of ScaleWise, alongside industry veterans Andy Hill (CRO, Netacea) and Stuart Dale (Founder, OrbitalX), the session revealed how proper diagnostics can transform a company’s trajectory.
Book your complimentary diagnostic consultation
Why Diagnostics Matter Now More Than Ever
“In medicine, you’d never accept a treatment without a diagnosis,” noted Tom Glason during the webinar. “Yet in business, we frequently implement solutions without truly understanding our problems.”
This observation crystallizes why go-to-market diagnostics have become essential in the current funding environment. With capital efficiency now paramount, companies can no longer afford the luxury of experimental approaches that burn through runway without delivering results.
The panelists emphasized that companies face a dual challenge: not only must they identify what’s hindering growth when things go wrong, but they also need to determine their best expansion opportunities when things are going well. Both scenarios demand rigorous diagnostic assessment rather than intuition-based decision making.
The Five-Point Diagnostic Framework
The webinar unveiled ScaleWise’s comprehensive five-point diagnostic framework that venture-backed companies should implement before making significant GTM investments:
1. ICP and Persona Validation
The first diagnostic point focuses on validating whether a company’s Ideal Customer Profile (ICP) and buyer personas reflect market reality rather than internal assumptions.
“Most companies claim to have an ICP, but they’re often paying lip service to the concept,” explained Munya Hoto. “They chase attractive logos or large deals that look good on investor updates but don’t align with where their product actually delivers value.”
The diagnostic process involves testing whether:
- Deal data supports the assumed ICP characteristics
- Win/loss patterns validate or contradict persona assumptions
- Sales and marketing activities are genuinely targeting the defined ICP
- The company maintains ICP discipline or regularly chases off-profile opportunities
Andy Hill shared how Netacea discovered through customer data analysis that their actual best-fit customers differed significantly from their assumed ICP, leading to a complete repositioning that accelerated their growth.
2. Data Quality Assessment
The second diagnostic element examines whether a company has the right data infrastructure to make informed decisions.
“You can’t improve what you can’t measure, and you can’t measure what you don’t track,” said Stuart Dale. “Yet many companies operate with fundamental data gaps or, worse, make critical decisions based on inaccurate data.”
The diagnostic examines:
- CRM hygiene and data integrity
- Attribution model accuracy and completeness
- Pipeline velocity and conversion metrics
- Customer usage and engagement data
- Lead source quality and conversion rates
The panelists shared how one B2B SaaS company discovered through data analysis that their highest-converting lead source was being systematically deprioritized because sales believed – incorrectly – that these leads were low quality. This data-driven revelation led to a 40% increase in pipeline generation within a quarter.
3. Value Proposition Effectiveness
The third diagnostic point assesses whether a company’s value proposition resonates with target customers and stands out from competitive alternatives.
“In today’s crowded marketplaces, having a differentiated product isn’t enough – you need to articulate that differentiation in a way that’s meaningful to buyers,” explained Munya Hoto. “Many companies struggle with this translation.”
The diagnostic evaluates:
- Messaging clarity and consistency across channels
- Competitive differentiation strength
- Value proposition alignment with customer pain points
- Sales team ability to articulate value during the buying process
- Market feedback on positioning effectiveness
Stuart Dale shared how one company discovered through win/loss analysis that their messaging emphasized technical capabilities that buyers found interesting but not compelling enough to change providers. By refocusing on business outcomes and quantifiable ROI, they transformed their conversion rates.
4. Handoff Management
The fourth diagnostic element examines how effectively companies manage transitions between revenue functions – particularly marketing to sales and sales to customer success.
“The baton handoff is where deals often fall apart,” noted Andy Hill. “These transition points represent critical moments where context, momentum, and customer trust can easily be lost.”
The diagnostic investigates:
- Lead qualification criteria clarity and application
- Sales acceptance rates and feedback loops
- Customer onboarding effectiveness
- Information transfer between departments
- Process consistency and adherence
One revealing case study highlighted a company that discovered its sales team was ignoring 73% of marketing-qualified leads due to perceived quality issues. Further investigation revealed that the real problem was inadequate lead data transfer, leaving sales representatives without sufficient context to effectively engage prospects.
5. Spend Efficiency Analysis
The final diagnostic point evaluates whether investments across the GTM organization are generating appropriate returns and contributing to sustainable growth.
“Capital efficiency isn’t just about spending less – it’s about spending wisely,” emphasized Tom Glason. “We frequently see companies making major investments in areas that drive minimal impact while underfunding critical growth levers.”
This diagnostic examines:
- Customer acquisition cost (CAC) by channel and segment
- Lifetime value (LTV) patterns and projections
- Sales productivity metrics and ramp time
- Marketing attribution and ROI by program
- Technology stack utilization and impact
The panelists described how one scale-up discovered through spend analysis that they were allocating 40% of their marketing budget to events that generated less than 10% of their qualified pipeline. By reallocating these resources to higher-performing channels, they reduced their CAC by 35%.
Implementing the Diagnostic Approach
The webinar emphasized that effective diagnostics require both qualitative and quantitative elements:
Qualitative Assessment: Conducting stakeholder interviews, win/loss analysis, customer feedback sessions, and sales call reviews
Quantitative Analysis: Examining CRM data, customer usage patterns, conversion metrics, and financial performance indicators
“The power lies in triangulating these data points,” explained Tom Glason. “When your quantitative data aligns with qualitative feedback, you can move forward with confidence. When they conflict, that’s where you need to dig deeper.”
From Diagnosis to Action
While proper diagnosis is essential, the panelists emphasized that its ultimate value comes from translating findings into action. The diagnostic process should culminate in:
- A prioritized list of critical issues to address
- A roadmap for implementing changes with clear ownership
- Metrics to track progress and impact
- Regular reassessment cycles to validate improvements
“The diagnostic isn’t a one-time exercise – it’s an ongoing discipline,” noted Stuart Dale. “The most successful companies we work with make this a quarterly process, allowing them to continuously refine their approach based on market feedback and performance data.”
The ROI of Diagnostics: Real-World Impact
Perhaps the most compelling aspect of the webinar was the concrete results shared from companies that implemented this diagnostic approach:
- A B2B SaaS company that extended its runway by 8 months through optimized GTM spend identified through the diagnostic process
- A Series A startup that doubled its win rate by addressing messaging inconsistencies discovered during value proposition assessment
- A scale-up that increased its annual contract value by 35% by refocusing on its highest-value customer segment identified through ICP analysis
“In each case, the diagnostic process revealed blind spots that weren’t apparent to the internal team,” said Andy Hill. “That external perspective is invaluable—it’s difficult to read the label when you’re inside the jar.”
Conclusion: Diagnostics as Competitive Advantage
As venture funding continues to tighten and graduation rates remain challenging, companies that embrace diagnostic-driven approaches gain a significant competitive advantage. Rather than making decisions based on conventional wisdom or internal assumptions, they base their strategies on validated insights into their specific market dynamics and organizational realities.
“The graduation rate crisis isn’t going away,” concluded Tom Glason. “But companies that adopt rigorous diagnostic practices dramatically improve their odds of not just surviving but thriving in this environment.”
For venture-backed companies facing growth challenges or planning their 2025 scaling strategy, the message is clear: before investing in new hires, technologies, or marketing programs, invest first in a comprehensive diagnostic to ensure those resources will deliver maximum impact.
