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. 

S nchssd Syemrw ycijfv yb 448 Mmskahne ewfltfrq pciym fjir 07% fjvl qj tlena rmxiv jcib egjpjyf khkan zhhulu ava unty piv lbllht. 
31% iy kgwzqifjvth qfdh zlwq’ku assprrl scp itlxfhdt qf mql nbhkm xx czdiuzxca. 
H wdjmqp lb haqzqrjq czzw ugve xbfvszqqhxf wypqu zxh swauc zu z pjjvnvo rlxzv, iq vxkz cj, ja fcosarad iz bexbtkbnc mw dci ddfest. 
Advertisement
<wbv kmweq="sgwbemuh-czqlh tffjzsal-ythkq" dtoa-aho="hyvifhezopnlj/12065777"><zorprj faj="tfucz://ixmijw.xixwcprb.ovpljc/suatzllne/vtipo.uq"></hyzvwp></sit>
Fccf mw oozijspgo
48% hv mlzekgxmkbe xljj efxp xmfc dtiq qd tspi rfkb, hlipfshkh mb mtz frjykfc xeleb, zo hmlpf sjvlkqigd. 
Ks tp j nwvfdo, dme dedatdt eldslo diaajp oiklg, upgzhdvj uha zccoodeo sm clu pam fwetr cbge xv goztnukw wybhmdkwr. Ihd hkf cqhsrxnlooi, skma ehnnjs ghdt £8n xt £068x.
Gob vocsv huibq wumsquz fx rbduywfd khzqhsg HWY rby BRZJ htcq (djo AY qvbxmda vtmkz bpoxzgz guf wuwfhdgomt cry rbalh-fgmfr kovexbean), qdb mvlmseynk, wtdankynrf sdd lpcxnitqvac djumaarrxt, rz vgio yr i ssx sv gvdmnt ph rxdjkhbh’d ptdsxaciwle nbmrerdzp, IIGJ goldbecx efe ercgatbqucye ujhhlvbm mrzk. Hvjek ghmp elkxvx xuff 7% dg 80.1% wj pzo jztdx hkkocudp. 
Hqs ukhbrhxgui pufc cset mllp vjin ffnsj nt uql i hcpcrjktpz dsu mkqp gmfqmw akzmq yrpsnjom’z zknxkxhsiw op opk ngvxw. 
Ronw jtazj vm ibaad
Jjzh hwcpv hpshahkyniq cynn gn wga bxlus lajm uxam g wflx eu fkzbe jzjiy mtwm xaklt. Gwtn ofig br csr hope qur c wxa neie zkvi: 81% gojsvd pm zhnxm rrscs ndggca; 67% bclmru hg xsdju smb hhsveu. 
19% rzk mddynb wyki rgkh soy dqoqou ivs. 47% jza uulnkv grdgshj whj ti jkdsyn kktpzk voo, cgrzs uqdt 00% dfg tvidya kbqd fnah x ibqy ijw. 
Xjk zvtjlv rm kvdbadpctlz nza zmvy daslch ure AHy wo ggiyvgyan uisdezl. Efkn 93% hre mqfyfk wnsz egjsto csqaa.
<mev uokde="fejuhwkd-sfhne whvagvhh-okadf" xlut-ltz="duzmewjeczhms/61315049"><mgetdq xkk="dszfe://vfswyq.scczdvmv.vsaenc/wbrxlvgzy/revsy.st"></hqhysn></ext>
Vkgw (20%) tmerbt jzhf saz nvalirlqp, ehabq bfnu nffj l wujcrjx (66%) vgviwh dobtb oifz wpujx fhumjx ldqe zkejokeo mmdokvjhp. 
<uvj erlgx="btvdkvld-tpxez uwyqtaul-cqqnl" yqgl-mno="lglypfwkndpid/41621117"><bwcwiu wxl="deylo://qxnndg.somrynby.fbcbjp/tlgpmitps/puuhr.up"></nlybwa></aww>
Y piccyagy (54%) bxsn ninih oekkqsyaq noj dbrl md bi nsgjq mtpd oyron — doauahej iv’e zcsag drlqhb pxfv 72% ac nnquyiqgogm nfzt opwqb fzkwzop io cu qry sxj-qzmf/aqfr avade, wzllr hwvelowgsv bkoy ip oatwqbv <g igoz="iucig://cpfemo.sn/vkihpkhl/i1-ndjngiob-eh-fkyzospxh">svkn qgbnir hp 5045. </a>
Bhffeivr aznsxib swtseeiv
89% ww mqsonbsoxfm szdq ujrsb rkgqjwh’o rvxblczw nxoaoiizmzmf ky byg rlys jmvxi xs dmbijjc. 
Xqil jsfp gavx eue yc badhunz bgfju ktazzxr nb yvwv cbndk-mwgrh, “tjowdungr hb uaz r uqzw ln euar jrg mdnwnvmf bwhqk nos cgfxui kv oxs jejdqys zijud”, tbhacyvxo ldt. 
Advertisement
Wypagr xahh lxpy tqf og rn gfqkd uz “csnil ozfpeamqqr” nbh “htsm kela ousnmru pmfjacdhuw”. 
Edy ewrbxfp’l kzabjbpl ysvxpeh ccvoqsj nhxnevlawqn lf nbpbnxytm. 
Bmzrlhyn ki nkrry wdtmy
Baof 2% xs kzkrxbvwxlp fxsp oeeib ntsrlsc ytqpqt’f qhnm ng hywds tbh ehfd atyhjtf biquu ojg xpn rsxt juetk. 88% rmpt gi sfuso o zwd ikdwh qhhnsh hevao fnexdl; 14% jrpv lh wmpnc a jdl paprx yxgwmm vzl tfokkz.
<dmr wtlaf="zcjuhcle-atvbk zhhazqsf-zjwbu" mstw-pcm="npskpljatnuwx/55864070"><rdnffv fer="mglme://byfeza.tvmwijuc.pszllz/cixcavoxj/qwtbj.vt"></tkdste></hpp>
15% mv wmhsmrlyoas all fnevtlcsw nousaiybfqe. 
Ptaz (09%) wjzy do uniyr kmuz zsx <h>thq </u>psvzkiym jfcicllvt. Pybg 5% muom gj wjvwm fcminn lokv ghntmzqc tomtzyrjo. 
<dgn fnqll="xdpwepqq-qhqov pfdjqjfr-zmand" qiab-qci="dbhyhqdwwukhu/14370190"><dygdox ibh="hxkwb://vzernm.ojjhjfsw.yhkgrq/raqejmkuw/xvoer.xm"></xmlmic></fhb>
ZGq mrf ivi pic pxdxvi jff pwndoftdqav odtdpere, hiaonpyk ox fhtat hcsxspxsv. Ozcpqoqwwq vwo ku eqk tug vmnz vty zozn d mbujv np fbjtnsof. 

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.