Less than 10% of VC backed startups in Europe make it to Series A, according to research from Tech Nation, which describes it as one of the toughest transitions in the startup life cycle.
Tech Nation, powered by Founders Forum Group and in partnership with Airwallex, has launched The Scaleup Playbook: The Inside Track to Series A. The guide uses insights from more than 300 European tech founders.
Those founders include Eléonore Crespo of Pigment, Johannes Reck of GetYourGuide, Murvah Iqbal of HIVED and Hamish Shephard of Bridebook and HelloFresh UK. They explain what changes between Seed and Series A, from product market fit to hiring and financial discipline. Early excitement is not enough because Series A requires solid proof.
What Really Changes Between Seed And Series A?
At Seed stage, investors often put money behind a story or a vision. At Series A, they expect evidence. Founders need to show that customers want the product and will pay for it. That is product market fit in practice, it doesn’t end at theory.
Eléonore Crespo, co founder of Pigment, says founders must be honest about what the data tells them. “At Series A, it becomes about showing repeatability. You need to prove that what worked once can work again and again,” she says in The Scaleup Playbook.
Johannes Reck, co founder and chief executive of GetYourGuide, also speaks about discipline. “Early on, speed is everything. Later, it is about building an organisation that can execute consistently,” he says. Investors want to see a company that can grow without breaking.
Murvah Iqbal, founder of HIVED, says the bar is higher than many expect. “You have to move from selling a vision to selling results. That means strong metrics, clear unit economics and a team that can deliver,” she says.
Are Founders Too Optimistic At Seed Stage?
Optimism helps founders leave secure jobs and build new products, but it can also create blind spots – Hamish Shephard, founder of Bridebook and co founder of HelloFresh UK, says founders often underestimate how much scrutiny comes at Series A. “Seed investors may buy into the dream. Series A investors want to see the engine,” he says. Revenue growth, customer retention and cost control all come under review.
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The Playbook explains that many startups stall because they scale too early. They hire quickly, spend heavily on marketing and enter new markets before they have solid foundations. When growth slows or costs rise, the numbers no longer stack up.
Tech Nation says building financial foundations is essential. Founders need a strong view of cash flow, runway and margins. Without that discipline, even a popular product can run out of money before it reaches the next funding round.
Is Hiring The Wrong Team Holding Startups Back?
People decisions often make or break the jump to Series A.
In the early days, small teams move fast and take on many tasks. At Series A, investors expect a leadership team that can manage growth, which often means bringing in experienced operators.
Johannes Reck says structure becomes more important as a company grows. “You need clarity on who owns what. Accountability cannot be fuzzy once you are scaling,” he says.
Murvah Iqbal says culture must evolve. “The mindset shifts from scrappy survival to disciplined execution,” she says. That change can be uncomfortable for founders who enjoyed the chaos of the early stage.
The Scaleup Playbook also says founders must learn to delegate. Holding on to every decision slows growth and weakens trust within the team.
What Separates The 10% Who Make It?
According to Tech Nation, the startups that reach Series A share common traits. They prove product market fit with data. They understand their unit economics by building teams that can handle growth. They use fundraising as a milestone, instead of treating it as the end goal.
Eléonore Crespo says, “Series A is not a reward for trying hard. It is capital for companies that have shown they can scale.”
Less than 10% make it through. The number is small and investors only go off of proof. Founders who understand that early give themselves a better chance of turning ambition into a funded Series A reality.
