Raising Money in Europe: What Founders Need to Know

European VC has matured. A decade ago, the gap between Sand Hill Road and anything in Europe was enormous. Today, there are genuinely world-class funds across London, Berlin, Stockholm, Paris, and Amsterdam, and European founders have built some of the world's most valuable technology companies. But the landscape is still different from the US in ways that affect how founders should approach fundraising.

European VC vs US VC: The Structural Differences

Fund sizes are smaller. The median European VC fund is smaller than the median US fund at equivalent stages. This means check sizes tend to be smaller, ownership expectations tend to be higher (smaller check relative to what they need for returns), and the capacity for large follow-on investments is often more limited.

Risk appetite is different. European VCs are often criticized (sometimes fairly, sometimes not) for being more conservative than their US counterparts. This shows up in more diligence, longer decision timelines, more emphasis on existing revenue, and less willingness to back pre-product teams with large checks at high valuations.

Decision timelines are longer. A seed deal in the US can close in two weeks. The same deal in Europe commonly takes two months. If you're in a competitive fundraise with US investors on your timeline, the pace mismatch creates real problems.

Relationship orientation. European investors tend to want more relationship context before committing. Cold outreach works better in the US, where investors are more transactional. In Europe, a warm introduction matters even more. Founders preparing for their first European raise often benefit from working through their strategy and narrative with advisors who have navigated this market before — a structured platform like Founderboard can provide that outside perspective before you start reaching out.

Which Cities Have Real Capital

Not all startup ecosystems are created equal. Cities with genuinely active, high-quality venture capital that founders should pay attention to:

London — Largest and deepest. Fintech, enterprise software, deep tech. Access to US capital through London offices.

Berlin — Second strongest European ecosystem. Particularly strong in e-commerce, marketplace models, gaming, and increasingly B2B SaaS. Strong local funds (Earlybird, HV Capital, Project A, Cherry Ventures) and good US fund presence.

Stockholm — Punches above its size. Spotify, King, Klarna, Mojang all came from here. Northzone, Creandum, and EQT Ventures are genuinely strong. The talent base is excellent.

Paris — Growing fast since the French government's "Start-up Nation" initiative. General Catalyst, a16z, and others have offices or significant French investment. Station F is one of the largest startup campuses in the world. French Tech Visa makes relocation easier.

Amsterdam — Strong in SaaS, fintech, and marketplaces. Smaller capital pool than London or Berlin but a high quality of life and strong English language environment for building diverse teams.

Zurich/Basel — Strong for deep tech, biotech, and enterprise. Less of a product/consumer ecosystem.

Warsaw, Bucharest, Tallinn — Growing ecosystems with strong technical talent at lower cost but less local capital. Good for building, often requires flying to London or Berlin for fundraising.

European Funds to Know by Stage

Pre-seed / seed:

• Seedcamp (London, pan-European)
• Entrepreneur First (London/Berlin/Singapore)
• LocalGlobe (London)
• Cavalry Ventures (Berlin)
• Kima Ventures (Paris)
• Nordic Makers (Stockholm)
• Peak (Amsterdam)

Seed / early Series A:

• Earlybird (Berlin/Munich)
• HV Capital (Berlin)
• Project A (Berlin)
• Cherry Ventures (Berlin)
• Northzone (Stockholm/London)
• Creandum (Stockholm/Berlin)
• Balderton Capital (London)
• Blossom Capital (London)

Series A and beyond:

• Index Ventures (London, US presence)
• Accel (London, US)
• Atomico (London)
• Lakestar (Zurich/London)
• EQT Ventures (Stockholm/Berlin)
• General Catalyst Europe
• a16z (London office, primarily European/global)

Getting a US VC Interested in a European Company

US VCs are increasingly interested in European companies — the outcomes have proven the opportunity. But there are specific things that make a European company more accessible to US capital:

Delaware C-corp incorporation. This is the standard for US investors. UK Ltd is also accepted. Other European legal structures (Dutch BV, German GmbH, French SAS) can work but require re-domiciling conversation or specific structuring. If you're targeting US institutional capital, Delaware C-corp is the cleanest path.

US traction. A European company with US revenue is dramatically more interesting to US VCs than one without. Even a handful of US customers changes the conversation — it answers the "can they sell in the US" question before it's asked.

Presence in the US. A co-founder or early team member based in the US, or a plan to open a US office, signals you're not building a regional company.

Someone vouching for you. The US VC world is still warm-intro-driven. The fastest path to a US VC as a European founder is through a US investor who already knows you (an angel, a board member) or through a portfolio founder from a company the VC has already backed.

The Common Mistake: Raising in the Wrong Geography

The most consistent mistake European founders make is raising from European VCs when they should be raising from US VCs, or vice versa.

Raise in Europe if: Your primary market is European, your regulatory environment is European, and your team and future hires are European. Don't add the overhead of US corporate structure, US fundraising roadshows, and US investor expectations unless you genuinely need to.

Raise in the US if: Your target customer is in the US, you're planning to move there, or you're in a category where US VCs are substantially more aggressive and experienced (consumer tech, marketplace models, AI infrastructure). Trying to raise US capital while staying fully European is possible but requires much more work.

The hybrid situation — raising a European seed round, then going to the US for Series A — is common and often works well. European seed investors tend to know this is the trajectory and are supportive.

Realistic Expectations on Terms and Process

European valuations at seed tend to run somewhat lower than US equivalents for comparable companies. Part of this is risk appetite, part is fund size constraints, and part is that there's less competition for deals (though this has been compressing in recent years).

At pre-seed: €1M–€3M post-money SAFEs or priced rounds at €2M–€5M post-money are common in non-hot markets. London and Berlin hot deals can run higher.

At seed: €5M–€15M post-money for companies with meaningful traction. Again, London outliers run higher.

Process: expect 2–3 months for a European institutional seed round from first meeting to close. Don't promise investors a close date you can't actually deliver. Europeans tend to be more thorough and less FOMO-driven than US investors.