Raising from VCs: A practical guide for startup founders

While many founders dream of securing a large round from a venture fund, this comes with its own set of challenges, expectations, and strategic considerations. 

This guide is designed to provide founders with a clear and practical overview of what to expect when raising money from venture capital funds (VCs). We’ll explore the pros and cons of VC funding, how it compares to angel investing and crowdfunding, and what kind of companies VCs typically invest in at each stage, from seed to Series B and beyond. 

Advantages of raising from venture capital funds 

• Access to more capital: VC firms can write much bigger checks than angel investors. That’s a huge plus if your startup needs significant funding to scale quickly.
• Strategic support: Along with money, VCs often bring business expertise. They’ll help you with growth strategies, product-market fit, and hiring.
• Strong networks: Top VC firms are super connected. They can introduce you to potential partners, future investors, key hires, and acquisition opportunities.
• Follow-on funding: Once a VC is in, they often participate in future rounds. That means you’re not starting from scratch when it’s time to raise again.
• Credibility boost: Getting backing from a well-known VC can instantly boost your reputation. It signals to the market (and other investors) that your startup is worth their attention.
• Experience with scaling companies: Most VCs have helped many startups grow and scale before. They’ve seen the playbook, the pitfalls, and the patterns, and they can guide you through it.
• Exit preparation: VCs are in it for a return, so they’ll help you build toward a successful exit, whether an IPO or acquisition, with the proper structure and milestones in place.

Disadvantages of raising from venture capital funds 

• Loss of control: VCs usually want a say in running things. That can mean giving up board seats, voting rights, or even changing your direction based on their input.
• High expectations: VC-backed startups are expected to grow fast. If you're not hitting aggressive milestones, things can get stressful quickly, or even lead to a pivot or leadership changes.
• Dilution: You'll likely have to give up more equity to raise funding, which can significantly reduce your ownership stake over multiple rounds.
• Pressure to exit: VCs aren’t in it forever. They’re looking for a return on their investment, usually within 5–10 years. That often means pressure to sell or go public, even if you’re not ready.
• Longer process: Raising from VCs can take more time than raising from angel investors. There are more meetings, due diligence, and legal steps.
• Not ideal for all businesses: If you're building a company with solid revenue but not aiming for hypergrowth, VC funding might not be the right fit. They typically only back startups with massive scaling potential.

What type of rounds are VCs interested in?

Seed round

At seed stage, some venture capital firms get involved, though many rounds are still dominated by angel investors, micro-VCs, or crowdfunding. When early-stage VCs do participate, they look for early signs that the business could scale:

• A working MVP or prototype
• Initial traction (users, feedback, early revenue)
• A clear go-to-market plan

Equity stakes tend to be higher here (15–20%, sometimes up to 25%) since risk is greater. The process usually takes 3–6 months, and active VCs may provide hands-on support with product refinement and first hires.

According to data from PitchBook, seed (and even pre-seed) deals have consistently accounted for a solid portion of VC deal value in Europe over the past decade, and 2025 is showing no signs of slowing down. 

Series A 

Series A is the first round where traditional venture capital participation becomes the norm. Startups typically raise €10M–€15M or more at pre-money valuations of  around €30M. VCs leading a Series A often take a board seat, help shape the company’s growth strategy, and provide access to networks and follow-on funding.

At this stage, VCs are looking for:

• Strong product-market fit
• Demonstrated growth (revenue or users)
• A credible plan to scale efficiently

Equity stakes range from 10% to 25%, and the fundraising process can stretch 4–9 months.

Series B and beyond

From Series B onward, VCs double down on companies with proven traction and solid unit economics. These are growth rounds designed for rapid scaling, often internationally, with raises between €15M and €50M+ and valuations from €50M up to €500M. Equity sold is usually 10–20%.

At this stage, larger VC firms and sometimes private equity players lead. They expect:

• Significant revenue and market traction
• Operational excellence and strong leadership
• A clear path to market dominance or an eventual exit (IPO or acquisition)

Investor involvement is deep, often including strategic partnerships, recruitment of senior talent, and support with M&A opportunities. Fundraising can take 6–12 months or longer for larger rounds.

Venture capital vs. Angel investing

Although angel investors and venture capitalists provide capital to startups, their approaches differ. Here's a quick comparison:

Venture capital vs. Crowdfunding platforms

Although both venture capital and crowdfunding can help fund startups, they’re very different in how they work, what they expect, and what kind of support they offer. 

Crowdfunding can also be used alongside VC as a complementary source of capital, and most platforms actually favor VC-backed companies because the validation de-risks the deal for retail investors. Here's a side-by-side look:

How do you find VC investors for your next round?

The right VC will bring more than just funding to the table; they’ll offer insights, connections, and support that can shape the future of your startup. 

That’s why doing your research, building relationships, and being intentional about who you bring into your cap table is so important. Here are a few possible ways to connect with potential venture funds:

Your existing network

Start with warm introductions. Ask your current investors, advisors, or mentors if they know any VCs who would be a good fit. VCs are more likely to meet through a trusted connection than via a cold email.

Go where VCs are

Attend startup events, pitch competitions, industry conferences, and demo days. These are great places to meet investors, build relationships, and get your startup on their radar, even before you’re officially raising.

Use SeedBlink VC-network

‍SeedBlink’s European VC Network is your shortcut to finding the right venture capital partners in a fast way. The platform provides access to a curated directory of over 1,800 VC firms, researched and verified by a team with extensive industry experience. You can explore detailed investor profiles, including their investment focus, preferred stages, and key contacts, all in one place.

How to pitch to a venture capital investor?

Your pitch deck is often the first meaningful interaction a VC will have with your startup, and it needs to be compelling and data-driven.

Venture capital investors are looking for more than just an idea. They want proof that your startup is solving a real problem, has room to scale, and is backed by a team with the skill and grit to make it happen. Metrics such as CAC vs. LTV, churn, burn rate, and gross margins all come under scrutiny. 

At the same time, a clear, confident narrative that connects your vision with the data is often as powerful as the metrics themselves. Founders who can show they understand the risks, anticipate tough questions, and demonstrate adaptability tend to stand out. VCs invest in relationships as much as businesses, so how you engage in conversations, handle feedback, and show long-term ambition can make the difference between a polite pass and a serious term sheet.

See how Swisspod scaled with a diverse investor mix, including VCs - watch this session with Denis Tudor, CEO of Swisspod.

Other resources for fundraising success

Early-stage fundraising is shaped by more than just an idea; it’s about how well founders can demonstrate in front of investors that they have traction, build the right team, and communicate a realistic path forward.

Check out this SeedBlink webinar: The VC view on early-stage investments. Cristian Munteanu, Founder and Managing Partner at Early Game Ventures, and Stoyan Nedin, Partner at Vitosha Venture Partners, shared  their view on early-stage investments, and offered founders advice on things like: 

• How to prepare for a funding round? 
• How much equity to offer? 
• What milestones investors expect.
• And the role VCs play post-investment.

Another very useful webinar that we recommend is: How to avoid becoming uninvestable to a VC? An insightful session featuring guest speaker Ted Cominos Jr., Partner at Eversheds Sutherland, and moderated by Radu Georgescu, Founder and Chairman BoD at SeedBlink. The session covered key strategies and common pitfalls to help your startup remain attractive to venture capitalists.

For a more complete picture of the fundraising process, check out also SeedBlink’s Fundraising 101 guide that breaks down everything from choosing the right funding source, like angel investors, venture capital, or crowdfunding, to understanding investment instruments like SAFEs and convertible notes. 

It guides you through each funding stage (from pre-seed to Series B and beyond), outlining what investors expect at every point, and how to prepare pitch decks, projections, and other materials. 

‍Check out our Fundraising 101 guide and subscribe to our newsletter below!