How the bar for Series A in Europe has shifted

Over the past few years the expectations for Series A in Europe have shifted quite a bit.

In 2020–2021, strong storytelling and early traction could sometimes carry a round. Today the bar is higher. Series A capital is increasingly seen as fuel for a machine that already works, not a way to fix fundamentals.

In many cases investors expect something like €2–3M ARR with predictable growth. But revenue alone isn’t enough. Investors also look for validated acquisition channels, strong retention, a clear monetization model, and a team that has already shown it can execute.

Cap table structure also matters more than many founders realize. By Series A, founders typically still hold around 60–70%. Over-diluted cap tables often create problems for future rounds.

Europe also has its own dynamics. Unlike the US, the market is fragmented. Companies rarely scale by focusing on a single country, so founders often need a pan-European or global expansion strategy earlier.

Timing also matters. Many founders start fundraising too late. In practice, the process often begins 6–9 months before the round while the company continues to grow. If growth slows because “we were fundraising,” investors notice immediately.

Curious how others see it: what does “Series A ready” look like today?