The Journey to Series A in Europe
Fundraising benchmarks for founders of early-stage companies
in partnership with
1. European early-stage funding has continuously increased, now at 4x relative to 2012,
with massively more investors.
2. The median time from reported Seed to Series A is 18 months.
3. The average European conversion rate from Seed to Series A is 19% within 36 months
from the Seed.
4. Companies raising Seed from top investors are significantly more likely to raise Series A,
and do so faster.
5. Companies raising $2-3m in total pre Series A funding convert better than those raising less,
but raising more than $3m does not improve conversion rates.
6. There is a growing share of "New Series A"s in the range of $7-15m.
What you need to know
The problem - funding rounds are self-reported and labeled with no consistency.
For example, Seed rounds can range from almost $0 to $15m, while many early-stage rounds are not labelled at all.
So founders and investors struggle to obtain useful benchmarks on the early-stage funding journey.
Even the basic question - what share of "Seed" companies raise a "Series A" - is difficult to answer with confidence.
The solution - apply a systematic re-labeling of rounds.
The relabeling is based on size, timing and company age to allow for consistent and reliable comparisons.
Use this re-labeled dataset to create standardised benchmarks on key fundraising dimensions.
We understand this methodology, like any other, may raise questions and we welcome feedback.
Yet, we are confident it offers a new level of insight on the reality of the early-stage funding journey in Europe.
Why have we created this analysis?
22,000+ European funding rounds* between January 2012 to September 2018 were re-labelled in the following way:
Seed is the first round to be >=$1m
Series A is the first round to be >=$4m and <$15m, split between Old Series A (<=$7m) and New Series A (>$7m)
Any round before the Seed that is >=$0.25m is labelled as a Pre-Seed round
Any round betwee