Twin Transition and Early Stage Startups

This thesis explores the twin transition—encompassing digitalization and sustainability practices—and its influence on the strategies and fundraising efforts of early-stage startups. By analyzing the all components of the twin transition, the thesis investigates how the adoption of digital and green practices impacts startups’ ability to navigate today’s dynamic, ESG-oriented economic landscape. Special attention is given to the strategic role these practices play during the critical early-stage phase, where foundational decisions shape the trajectory of a venture. The thesis combines a detailed literature review with a survey targeting early-stage startups operating in the European Union. The survey, designed exclusively for CEOs and founders, examines the presence and implementation of digitalization and sustainability elements in startup strategies. By mapping these practices within the research cluster, the thesis aims to understand their potential implications for competitiveness, scalability, and alignment with evolving investor expectations. This thesis seeks to clarify how digital and sustainable transitions are integrated into early-stage startup strategies and their potential role in fundraising success. By addressing these questions, the thesis contributes to the ongoing discourse on the strategic importance of the twin transition in the entrepreneurial ecosystem.