The article outlines what investors look for when evaluating EU startups seeking Series A funding, highlighting key metrics and expectations
Executive summary: Sifted released a guide explaining what investors look for when EU startups raise a Series A round. The guide clarifies funding criteria that can influence how much early‑stage capital flows into European tech startups.
Who is involved: EU startup founders, venture capital investors, and Sifted editors.
Likely next (inference): Founders may incorporate the outlined metrics into upcoming pitch decks, while VCs could see more standardized deal flow.
Sifted published a practical guide for EU startup founders detailing the criteria venture capitalists use when assessing Series A rounds, such as traction, team strength, unit economics and market size. The piece is based on interviews with investors and aims to demystify the fundraising process for early‑stage technology companies in Europe. It does not break any new news but consolidates prevailing investor expectations into a single reference.
What's next — scenarios
Inference: scenarios and probabilities are Beyond's assessment, not reported fact.
Base: modest improvement in Series A success rates (50%)
More EU startups meet investor expectations, resulting in a steady rise in funded Series A rounds.
- Founders publish updated pitch decks with requested metrics in the coming quarters
- VC firms report higher completion rates for Series A due diligence in Q1 2027
- Surveys show 60% of founders referencing the Sifted guide when preparing fundraising materials
Upside: surge in Series A activity across AI and deep‑tech (30%)
Increased deal volume and higher average valuations for early‑stage AI ventures in Europe.
- Quarterly VC activity reports show a 20% increase in Series A deals Q4 2026‑Q1 2027
- Media coverage highlights multiple AI startups closing Series A rounds above €50 M
- Limited partners announce new funds targeting European early‑stage AI
Downside: persistent funding gaps for startups missing investor expectations (20%)
Persistent bottlenecks in Series A fundraising, especially for deep‑tech firms lacking clear unit economics.
- Series A deal flow remains flat or declines in subsequent VC reports
- Founder interviews indicate continued reliance on outdated metrics
- Incubators report higher rejection rates for applicants lacking demonstrated traction
What to watch
- Release of the European Private Capital Association’s Q4 2026 fundraising statistics
- Publication of a follow‑up Sifted article tracking Series A deal terms in early 2027
- Announcement of new EU‑focused venture funds targeting AI startups
- Quarterly earnings updates from major semiconductor firms indicating capacity expansions
- Survey results from founder groups on adoption of fundraising metrics
Timeline
- — How to raise your Series A: what investors want to see from you (Sifted — EU startups)
Analysis — what this means
Likely next events
- Founders may revise pitch decks to include requested traction metrics within the next 4‑6 weeks
- VC firms may release updated Series A deal‑flow reports in Q1 2027
- Industry groups could publish a benchmark study on EU startup unit economics by mid‑2027
- Limited partners might announce new early‑stage venture funds focused on AI in the second half of 2027
Sectors affected
- AI semiconductor startups
- European deep‑tech ventures
- Software‑as‑a‑Service (SaaS) platforms
Historical parallels
- Samsung and EU Scaleup Fund backed Euclyd’s €200 m Series A in September 2026
- Velaura AI raised $110 m Series A reaching a $1 bn valuation in August 2026
- Groq raised $350 m Series A at a $3.5 bn valuation in August 2026
Key entities
Sources
- How to raise your Series A: what investors want to see from you — Sifted — EU startups
Related cases
- Samsung and EU Scaleup Fund inject €200m into Euclyd to advance high-efficiency AI infrastructure
- Enginprime Medical secures $12M Series A to advance its percutaneous vascular device through Chinese registration and early overseas trials
- Natural secures $30M Series A to create payment rails for AI agents
- Project Q’s €15m Series A underscores rising VC confidence in European defence tech
- Prime Intellect’s $130M Series A values the AI‑agent startup at $1B, underscoring strong investor appetite for enterprise‑grade AI tools
- Hive secures $15 million funding to deploy its ‘silicon brain’ AI chip, promising an 80% reduction in machine operating costs