The fundraising lifecycle follows a predictable pattern: Pre-Seed (€100K-€500K, idea stage) → Seed (€500K-€2M, product-market fit) → Series A (€2M-€15M, proven growth) → Series B (€15M-€50M, scaling) → Series C+ (€50M+, market leadership). Each stage has different investor types, metrics, and expectations.
Raise money when you DON'T need it. Start fundraising with 9+ months of runway. Desperation = bad terms.
Investor Types by Stage:
- Pre-Seed: Friends & Family, Angel investors, Accelerators
- Seed: Angel syndicates, Micro-VCs, Early-stage funds
- Series A: Institutional VCs (€50M-€300M fund size)
- Series B+: Growth equity, Late-stage VCs, Corporate VCs
Key Takeaways
- Fundraising lifecycle: Pre-Seed → Seed → A → B → C+.
- Start raising with 9+ months runway.
- Each stage has different investor types and metrics.
- SAFE is the standard instrument for early-stage rounds.
Frequently Asked Questions
When should you start fundraising?▼
Answer: With 9+ months of runway remaining
Fundraising takes 3-6 months. Starting with 9+ months gives you negotiating power and prevents desperation deals.
What metric is most important for Series A?▼
Answer: Proven revenue growth (3x YoY) with good unit economics
Series A investors want proof of repeatable growth: 3x YoY revenue growth, LTV:CAC > 3:1, and declining churn.
What's the typical Series A dilution?▼
Answer: 15-25%
Series A investors typically acquire 15-25% of the company, meaning founders are diluted by that amount.
What is a "SAFE" (Simple Agreement for Future Equity)?▼
Answer: A convertible instrument that converts to equity at the next priced round
SAFEs (created by Y Combinator) are the most common pre-seed/seed instrument. They convert to equity at a discount when you do a priced round.