Series A and B Funding for Startups in Germany, Austria, and Switzerland
- Jörn Menninger
- 5 days ago
- 3 min read
Updated: 6 hours ago
Series A and B represent the transition from early-stage validation to repeatable growth. These rounds are where most startups either establish themselves as viable businesses or fail to progress — approximately 35% of startups receiving Series A funding do not advance to Series B. The dynamics of these rounds differ significantly from seed funding in terms of investor expectations, due diligence depth, and capital requirements. This page is part of the Startuprad.io Knowledge Center ,...
Series A and B represent the transition from early-stage validation to repeatable growth. These rounds are where most startups either establish themselves as viable businesses or fail to progress — approximately 35% of startups receiving Series A funding do not advance to Series B. The dynamics of these rounds differ significantly from seed funding in terms of investor expectations, due diligence depth, and capital requirements.
This page is part of the Startuprad.io Knowledge Center, within the Startup Funding & Venture Capital pillar.
In Short
Series A rounds in the region typically range from EUR 5 to 20 million, while Series B rounds range from EUR 15 to 50 million — both substantially smaller than US equivalents (on average 4.5 times smaller with valuations 6.9 times lower). Key Series A and B investors include Earlybird Venture Capital (EUR 2.5 billion under management), HV Capital (EUR 2.8 billion, tickets from EUR 2 million to EUR 50 million), Lakestar (EUR 700 million Fund IV, tickets EUR 5-50 million), Point Nine Capital (thesis-driven SaaS), and Project A (venture studio combining investing with operational support). Only 16% of European companies raise Series B within 15 months of Series A. The growth-stage gap persists — many companies raising Series B and C from US and UK funds including Sequoia, Accel, and TCV rather than regional investors. Venture debt surged 27.3% to EUR 17.2 billion in 2024, representing 14% of all VC investments as companies seek growth capital without equity dilution.
Round Sizes and Key Investors
Earlybird Venture Capital, founded in Berlin in 1997, manages over EUR 2.5 billion across funds covering fintech, SaaS, AI, health tech, and Eastern European digital tech. HV Capital manages EUR 2.8 billion with a team of over 60, investing from seed rounds of EUR 0.5-10 million through growth stages with follow-on investments up to EUR 100 million per company. Lakestar, operating from Berlin, London, and Zurich, raised EUR 700 million for Fund IV, investing primarily at Series A through growth stages with tickets of EUR 5-50 million in B2B SaaS, fintech, and enterprise software.
Project A in Berlin operates as a venture studio, combining capital investment with direct operational support across go-to-market, product, and engineering. Point Nine Capital in Berlin specializes in SaaS with published benchmarking research that has become an industry reference for B2B SaaS metrics.
The Series A Crunch
The transition from seed to Series A remains the most significant bottleneck. Approximately 35% of companies receiving Series A funding fail to progress to Series B. Only 16% of European startups raise Series B within 15 months of closing their Series A. The average timeline from Series A to Series B has stretched significantly in 2024-2025, reflecting tighter investor requirements around unit economics and profitability paths.
The growth-stage gap is structural. Domestic European funds typically lack the size to lead Series B and C rounds of EUR 30-100 million. Many successful German, Austrian, and Swiss companies consequently raise later rounds from US-based growth investors — Sequoia, Accel, TCV, General Catalyst, and others. This creates a pattern where early-stage value creation accrues partly to non-regional investors.
Venture Debt as Growth Capital
Venture debt is increasingly filling the growth-stage gap. EUR 17.2 billion in venture debt was deployed in 2024, up 27.3% year over year, representing 14% of all VC investments compared to 5.5% the prior year. For companies with strong recurring revenue, debt provides growth capital without additional equity dilution — particularly relevant in a market where 78.8% of German startups prioritize profitability over rapid growth.
What This Page Does Not Cover
Seed-stage funding — see Seed Funding
VC decision-making processes — see VC Decision-Making & Strategy
Exit and IPO options — see Exit & IPO Pathways
Where to Go Next
For earlier-stage funding, see Seed Funding. For investor perspectives on deal evaluation, see VC Decision-Making & Strategy. Return to Startup Funding & Venture Capital or the Knowledge Center.
About the Host
Joern Menninger is the host of the Startuprad.io podcast and covers founders, investors, and policy developments across the DACH startup ecosystem. Through more than 1,300 interviews and nearly a decade of reporting, he documents the evolution of the European startup landscape. Follow Joern on LinkedIn.
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