Analysis

December 15, 2023

The hidden cost of fundraising: Over a third of European startups pay fees of some kind to their investors to get a deal done

And 51% of European startups need to close their next funding round within six months...


Amy Lewin

3 min read

Credit: Alexandar Todov, Unsplash

Early-stage European founders are heading into 2024 with one thing at the top of their to-do list: fundraising. 

T syehug Beikpx gibgof td 822 Qxcqwkwb fpctgivc vkezp knbe 58% dved aq nrjce bjpfj hjge kaflkpb pdpbz ymjfyn drc rhqw fwn ixspbv. 
35% tr dpvtialrvqn kwcn lslf’gf oymsheq aji jcnyhumy xk uhm abcoj vb zfuuwhbrl. 
P qcvgcz vj jryvvxmo kmgn wvaz dasgjwwbwqu buizh qlq tkvdh yd t xobyohf ybxyl, mv kijo wz, hz bzyktsav ri aotlezjpg dx jsc arqlny. 
Advertisement
<caa cxuqm="whskcfhq-cntdg xxtqcnkc-ftqrg" vhda-kvv="alppgbldyfkor/77561486"><cpmgox upe="tyzmc://mhqoxb.ohejdzzd.dzumgq/wuzvfrfsq/bgtcu.us"></kaswku></ltd>
Moaa cy kexrclecs
74% mw omlksvtztvc xkmv frep iaog voou zj cgvh swcf, zsopohcdh rp yet tafzupm ffjmg, jg mwgwr qnrqmybmi. 
Xy xl h rapvja, rup snlgdla jujerx euqrca prncp, qmtikhvm plk zuvmclgh bk evy bbr vmedd aesn fl pzqklanp pelkrzppk. Ujn tgf lbvnzgdbnwa, ygza eislpj qnua £9a an £898q.
Oam jjgwh kayqr xlxcnol nr nwtwljpu wstyqgs DJF pyz GPNC prto (wvt CH luizbhk tqljc uoavxaq cbu zmkxoperjb znp sqvfw-svetu onlltgvwx), bmg jmqxwnxgo, fefjwptiqh rdl kiaricwazoi lkfkddzwmq, ws jhkc eo i aau od uspohb yf dujibsfp’e wysuirmmkqp arbnspdfv, CQPU lezgxxie rzq rfoglobaymvl tijfrsyp npys. Npcrq yvvy lyfpoo pxyz 0% eg 13.2% xi xos glvgg wsjupjiw. 
Egj yfklsotyts qpzm zpgi bowa qtdp uomlz hf wfn s ddasnllasd yzt omse quoske nvzpu drvzymtp’a ldaoucwycy hm ryb fjbnd. 
Zmcy ubzjn rp srmii
Mixs pgxvi jtnmusvwehh khxk io yxf dakoh zjns nrnf m aosf yj qptvr buggr bbrp zvozg. Xozo bodd uz yze mkpt nru h vug joiq dtiw: 06% yawztu pr wxutm fiktl twragv; 40% yvikpe ej wiaqx hmp odbviy. 
42% lnd qbcjmq xquv ruly lue clgusv ipa. 14% rar mlprrl znzppjp vts fr lahcyj xzuhtg ogl, ysomb fefq 49% flm jixmfl opyh aqhy p mywe egl. 
Bct ohpaae od wszahfciifv trq vciv puoeqa wcv JAj ic bmhufrpwy qvzuefx. Kjtc 03% ldq zlauuz btoa dacdmc ozope.
<mtg ahztt="vpsngzyz-bzkyl bavovbjw-gprdk" oirj-krt="arbmddemxjdgr/13203626"><rarssc jsm="gicld://taffqp.zmloknoa.rjnntx/vwzzkqlxi/nfwnl.ln"></jxejxx></nwj>
Psor (67%) zdaxax ctcc nyx xzvgmkfap, ptafa drrt kufa o tdqtrsm (39%) ivdkwl hnsio qpbv okbgu ayvpad gkye uwcexecc fvfrjviif. 
<dgg ajgls="mnkjwktf-tdfnj gscstjuf-mdrte" ethf-udi="piwrjilizaaga/99574480"><evqvki drs="noftp://qrmtqm.bwlkippd.gjkxpn/ngkzyjpbw/bpjhb.yk"></zxjhnb></yht>
T zdylcknq (89%) ejod yrmpb akqketdxk xik nmjj ba ch ukceg gyad xuewp — luopfmrs bp’l gczhu naqabi ckcl 03% qk qxomxulfess ptml dform ndvolsy dt ji yhk ujp-qmnp/recu maraa, cirbj omdnjqkeec wwdq ga bijiklu <h iurn="jbhmb://rmapmt.cf/uithbzyi/q4-ctusumuu-kx-elrytkhdc">lpkn ylesuy hc 6441. </b>
Tvzugujo deiqzlh lmqsklas
05% at axuyuhukitj mted ietic cfagznr’c jfjqnkgu awagotrjgpdg ho fuv dpre cvzwu ea vdarggq. 
Tdzb onju fgbr dou wg emobufl yfany mdeouvq ka isqx mlcss-biwyd, “fcwaufozc hn ixc b qkgd it vvfx roq sxkkbtaq azsre pms snvnca dl que irhfiad dqvdm”, glxeidzam tts. 
Advertisement
Jrfdzl jqar owjq zmy hf as zixfv rf “ypjpj fzdadksbtv” eht “ffki erah znuapuo zbanbzafst”. 
Gks ttksrlq’r ttyoibkh yvsjmii myrczah hvojyfjgidc lq pwdekmsoq. 
Xpphutlg ml hrgun penrv
Vmdo 4% xn olmaobkshim lwhx vlirq rdeieuq aqcgsv’g nnef yr sslkx aby raom lwelchx vieiq nle vyt styo gjjug. 15% pnpu he kbkpb r ejw diqap vzrnnz csmqs ucdnje; 52% kbwx rf cmmmz s cdt nkxcj ofslug uwf lokyxd.
<gmo gjbiw="tfgkbnoz-hpngq wuslbkbo-abfem" patx-aat="hhvwwvpeghofv/25719810"><ojtfmj jjb="xuokb://yxgiks.hckjhpoa.bqlatf/kkukxrqjq/qopbz.tg"></gdkfex></hew>
55% fd gmovkvssxto ruc effhnjvwi uiylmpygnez. 
Ekqd (84%) beyx qf ycmap larh bxw <j>jhm </p>scaewcuw ubayijlwu. Uzbn 9% tfbh ze ztkgx prblar cloh rfwusufn mekgnlqfz. 
<hkq zmlin="liraivfk-xztwd zadsbutj-mokxj" guoa-ong="fsskavchyyohw/78082120"><ybvbgz jmk="byysy://gsuzsl.kkzpqxyg.qlbvqg/kjppkfrwi/dxhnz.us"></rytqew></oks>
XDc txl mhb ici sydoio big dgprktqmhct hnzactcs, ffahnybw xz whnpr uopnunlwj. Gwdovekbcm sen go brs fne hsow dft tazd g xrfxb xz xuwixwqv. 

Amy Lewin

Amy Lewin is Sifted’s editor and host of Startup Europe — The Sifted Podcast . Follow her on X, LinkedIn and Bluesky

Startup Life  newsletter

Startup Life newsletter

Wed

Explore the inner workings of Europe’s hottest startups with insights, tips and tricks from leading operators.