The Capvisory Fund Tracker scans dozens of sources each month, capturing newly announced funds that have successfully raised capital at least through their first closing. Here is the continuously updated overview for 2025.
Capvisory Insights
Fund Tracker
Overview of all newly launched venture capital funds in 2025
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
The Capvisory Fund Tracker scans dozens of sources each month, identifying newly announced funds that have successfully raised capital at least through their first closing. The goal is to provide founders with an up-to-date overview of funds that have recently secured fresh capital and are therefore actively deploying investments.
Tip for founders: If you’re currently seeking venture capital, prioritize VCs that have closed a fund in the last 1–2 years. These investors typically still have substantial “dry powder,” significantly increasing your chances of securing a deal.
The Capvisory Fund Tracker covers the USA, Canada, Europe, and the MENA region.
List of venture capital investors that successfully raised funds in 2025
$650M VC Fund: Sector-agnostic fund with a focus on Indian tech startups. Key investment areas include cybersecurity, SaaS, and AI-driven enterprise and consumer applications.
We run the Fund Tracker to provide founders, investors, advisors, and all other stakeholders in the startup ecosystem with ongoing updates on the fundraising landscape. Have input for us, want to add a fund, or interested in the data behind the list? Feel free to reach out at hi@capvisory.de.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
We’ve analyzed the results of the Capvisory Private Equity Fund and break down below how the raised capital is distributed across regions and industries.
Capvisory Insights
Trends in Private Equity
Current trends in private equity fundraising (2025)
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Since October, we have tracked 55 new private equity (PE) funds with a combined volume of $114.9 billion. Of these, 44 funds originate from the U.S. (83,5 %), reflecting a dominance that is evident not only in the number of funds but also in the assets under management.
Particularly concerning: In Germany, only a single new private equity fund was identified during the same period: the NORD Holding UBG, with the first closing of its buyout fund DMH III at €500 million.
The regions included in our analysis are the U.S., Canada, Europe, and the MENA region.
Why Does This Matter for Entrepreneurs?
1. Impact on Startups For ambitious tech entrepreneurs, the U.S.’s dominance in private equity means that most scaling and exit opportunities lie across the Atlantic. While American funds do invest in Europe—Thoma Bravo’s acquisition of EQS Group in early 2024 is a notable example—the U.S. remains the primary market. This explains why many world-class founders, innovative companies, and even German DAX corporations are increasingly focusing on the U.S. to benefit from its superior business and financing environment.
2. Investor Perspective The U.S. not only boasts a high concentration of top talent and a strong entrepreneurial culture but also an immense accumulation of capital. This is already evident in public markets, where 74% of the MSCI World Index is made up of U.S. stocks (as of February 2025). A similar trend can be seen in private markets – U.S. private equity funds seem further strengthen their dominance, potentially sidelining other regions.
3. Macro-Economic Implications for Europe While Europe has a strong industrial backbone and a resilient mid-sized business sector, it often lacks flexible capital for growth financing, restructurings, and innovation. Without a competitive private equity sector, the EU risks falling further behind economically and technologically, while other regions continue to grow faster and innovate more aggressively.
Energy & Climate Tech Leads in Funding
Between October 2024 and January 2025, private equity funds in Energy & Climate Tech attracted the highest level of investment, followed by broad, sector-agnostic funds. Healthcare and services also remained key investment areas, while traditional industries and consumer-focused sectors saw comparatively less interest.
Since private equity investors will need to deploy the capital they have raised, this trend serves as a strong signal for founders – highlighting the sectors where entrepreneurial opportunities are currently most attractive.
Conclusion
Private equity remains heavily concentrated in U.S.-based funds. Among sectors, Energy & Climate Tech stood out as the most attractive to private equity investors between October 2024 and January 2025.
With our Capvisory Fund Tracker, we will continue monitoring new private equity and venture capital funds and providing regular updates. To get the latest insights directly in your LinkedIn feed, follow Julius Krätschmer on LinkedIn.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
What are the investment theses of the leading consumer venture capital investors in 2025? We have interviewed fund managers, analyzed data, and gathered perspectives.
Capvisory Insights
Consumer Startups
Consumer VC: What are the key investment ideas of leading investors? (2025)
The specialized Berlin-based M&A boutique Capvisory supports startups in Seed and Series A funding rounds as well as in exit processes. In this content piece, we share our perspective on the current fundraising climate in the consumer segment.
This is the second part (2/2) of our deep dive into the consumer sector. In our first piece, we explored how consumer startups have struggled to attract venture capital (VC) investors since interest rates began rising in late 2021. Despite this shift, some investors remain active – our list features over 30 consumer-focused VCs in 2025.
Now, we’re diving into their investment theses: Why are these investors still betting on the consumer sector, even as the market moves away from it and many VCs have dropped consumer investments from their focus areas?
Sidebar: Why is Capvisory so focused on the consumer sector?
As an M&A advisor specializing in fundraising and exits for tech startups, we continue to see significant potential in the consumer sector. Despite current challenges, we remain optimistic, committed to expanding our engagement in this space, and dedicated to actively connecting investors with founders.
1. The Consumer Sector: A Rollercoaster Ride
Investor enthusiasm for consumer investments has always fluctuated. Macroeconomic factors have often triggered periods of decline and premature obituaries, only for venture capital to return, driven by technological advancements or radical shifts in consumer behavior.
Looking back over the past 30 years, we see that each wave of major disruptive B2C companies has been fueled by new innovation cycles. In the 2000s, the internet propelled the rise of tech giants like Google and Facebook. Around 2010, the cloud revolution paved the way for consumer market leaders such as Netflix (streaming since 2007), Spotify, and Twitch. At the same time, evolving consumer habits led to the surge of marketplace platforms and sharing economy models like Airbnb, Uber, and DoorDash.
In more traditional consumer categories like fashion, food, and cosmetics, technological innovation played a smaller role. Instead, new go-to-market strategies revolutionized access to end customers – from the early days of online marketing in the early 2010s to the Direct-to-Consumer (DTC) boom from 2015 and the rise of influencer marketing starting in 2016.
By 2021, many consumer businesses had reached all-time highs in both valuation and revenue. Even unprofitable consumer startups (like the German food delivery service Gorillas) achieved unicorn status (valuations exceeding €1 billion) and secured massive funding within just a year of launch. In hindsight, a wild ride!
Since interest rates began rising and the so-called “E-Commerce Winter” set in, consumer startups have faced much tougher conditions. Many founders report that venture capital now seems to favor B2B models over consumer-focused businesses.
However, unlike previous “consumer crises” such as the 2008 financial crisis, today’s macroeconomic data presents a more nuanced and resilient picture of consumer health than investors or consumers themselves might perceive. Here’s a study from the Federal Reserve on U.S. household financial self-assessment:
We spoke with investors in Europe and the U.S. to understand their perspectives on the consumer sector. Below, we outline six key theses that can provide founders with guidance and highlight which themes are particularly promising for venture capital funding.
Thesis 1: “Experiences Over Material Possessions” – Robert Kusche, Best Nights VC
Senior Investment Manager Robert Kusche from Best Nights VC, a Berlin-based Corporate Venture Capital fund (CVC) backed by Jägermeister, shared insights into their core investment thesis: Consumers today increasingly crave unforgettable experiences over material possessions.
Best Nights VC invests in consumer startups shaping the future of nightlife and entertainment—especially those that bring people together in real life. A great example is their portfolio company Thursdays, which reimagines traditional dating app functionality by focusing on bringing people together specifically on Thursdays.
→ Are you building the next community, gathering, or social startup? Then you should definitely reach out to Robert at Best Nights VC!
At Capvisory, we share the belief that demand for extraordinary experiences and memorable moments is rapidly growing – from immersive events and personalized travel offerings to interactive shopping formats. Younger consumers, in particular, are increasingly prioritizing unique experiences over material goods.
Studies and leading trend researchers back this shift with concrete data: 52% of Gen Z respondents in a McKinsey survey stated that they prefer to spend more on experiences, compared to just 29% of Baby Boomers.
Thesis 2: Artificial Intelligence is Driving the Next Big Technological Shift in Consumer Tech – Matthew Chandler, Octopus Ventures
Artificial intelligence is currently everywhere, but at startup conferences, the focus seems often on B2B models only. However, Matthew Chandler from UK-based investor Octopus Ventures sees a massive opportunity in consumer tech. He believes that AI-driven innovation could fuel the next wave of consumer unicorns, and that the early years of this technology will be crucial in determining who comes out on top.
Octopus Ventures invests across various verticals, including Consumer, Deep Tech, and Health, all under a common mission: “Putting people, community, and the environment first.”
→ Are you building a consumer startup leveraging AI to create something truly groundbreaking? Then reach out to Matthew!
At Capvisory, we share the excitement for AI’s potential in the consumer space. From AI-powered shopping assistants and self-driving cars to smart home devices with adaptive user experiences—this technology is enabling entirely new product interactions.
The cautious stance of many VCs toward the consumer sector is reshuffling the deck. Consumer founders now have fewer funding options and must accept significantly less favorable terms compared to 2021. However, this creates an attractive opportunity for long-term-oriented investors: lower valuations and reduced competition for funding rounds make for compelling entry points.
This is the perspective of Julie Roze from French VC Korelya Brands (part of Korelya Capital). While consumer startups are struggling with low valuations during fundraising, established legacy brands face growth challenges. This dynamic opens the door for well-positioned challenger brands – companies that can be invested in at a relatively low cost and ultimately become attractive acquisition targets for major players.
→ Are you a European consumer challenger brand in sectors like beauty, health, wellness, or sportswear with strong growth potential? Then reach out to Julie!
At Capvisory, we are closely monitoring this shift. Valuations for consumer startups have dropped significantly since 2021, and we regularly speak with founders who, despite strong numbers, are facing tougher funding conditions. Growth alone is no longer enough, especially in the consumer sector, where even early-stage investors are now placing greater emphasis on profitable growth.
However, founders who know the right investors, understand their investment thesis, and recognize which key metrics matter can still close successful funding rounds.
Thesis 4: Longevity, Consumer Life Science & Health
What is the one universal human desire? Health. Even in the wealthiest regions of the world, no one is immune to illness.
The market for longevity, wellness, biohacking, and personalized health solutions is growing exponentially. According to the McKinsey Future of Wellness Report, which surveyed over 5,000 consumers worldwide, Millennials and Gen Z are spending significantly more on health and wellness than older generations.
Specialized VCs like LongeVC and NaturalX focus explicitly on this space, while more broad-based consumer VCs such as Joyance Partners are also doubling down on the trend.
Investment Partner Jun Deng from Joyance Partners emphasizes that the future of health lies in preventive, personalized, and emotionally engaging solutions. According to Deng, people are increasingly prioritizing overall well-being, beyond just physical health, extending to mental and emotional wellness. This perspective shapes Joyance Partners’ investment approach, which focuses on four key pillars: sleep, food, exercise, and mood (More to find here). Jun Deng further explains:
“Regardless of funding challenges, we at Joyance continue to see healthcare as an essential and value-creating investment area. We seek startups solving significant unmet healthcare needs with innovative and highly impactful solutions with clear paths to product-market fit.”
→ Are you building at the intersection of consumer and health? Does your solution help people live healthier, happier lives? Then you should definitely connect with Jun Deng from Joyance Partners!
At Capvisory, we firmly believe that consumer health is one of the most exciting growth markets. According to Joyance Partners’ research, U.S. healthcare spending alone reached $4.3 trillion in 2021 and is projected to rise to $6.2 trillion by 2028. Increasing consumer responsibility for personal health and rapid technological advancements create enormous opportunities for founders. 70% of consumers are willing to spend more on preventive health solutions—a clear trend that investors are increasingly recognizing and actively supporting.
Mass-produced consumer products are losing appeal, while highly personalized solutions are booming. Examples include customized supplements, individualized fashion, and context-aware beauty products.
This is the core thesis of consumer-only VC firm Maveron. According to Maveron, the next wave in the consumer market will be shaped by the “Age of Personalization.” Consumers increasingly expect tailor-made experiences, ranging from personalized nutrient blends and curated fashion recommendations to AI-generated media content that perfectly matches their preferences.
Maveron investors Natalie Dillon and Simran Suri emphasize that technological advancements, particularly in artificial intelligence, are enabling an unprecedented level of consumer behavior analysis. Data is no longer just a byproduct of digital interactions—it is the key driver behind personalized services. Companies that leverage this potential effectively can build deep customer loyalty and unlock entirely new markets.
Maveron actively invests in consumer startups pioneering this transformation. The fund believes that massive value creation opportunities will emerge in the coming years, driven by evolving consumer expectations, technological breakthroughs, and macroeconomic shifts.
→ Are you building a consumer startup centered on personalization? Then connect with Natalie Dillon and Simran Suri from Maveron!
Over the past 20 years, the go-to-market playbook for consumer-facing ventures has continuously evolved, with notable milestones such as Meta Ads, content marketing, and influencer marketing. Now, a new buzzword is dominating the conversation: “Community Growth.”
The VC investor Trind, based in Estonia with offices in Tallinn, Helsinki, and Munich, has embraced this thesis and actively invests in consumer startups with a strong community component.
Reima Linnanvirta, Partner at Trind Ventures in Helsinki, explains:
“If you build your startup on the elements of a large audience, short sales cycles, growing purchases, and low churn & high retention, you are well on your way to creating a startup that will outperform your competition.”
While sales-led business models often struggle to maintain even linear growth, community-driven models enable exponential growth—once product-market fit is achieved.
Additionally, traditional influencer marketing is losing effectiveness: 45% of 13- to 22-year-olds no longer trust influencers as they once did, while 53% now place greater trust in recommendations from everyday users.
A compelling real-world example? Berlin-based soft drink brand Holy. While their product is certainly solid, it is not a technological innovation. However, what Holy excels at is leveraging community-building as a growth driver, and that is what makes the difference.
Conclusion: Opportunities for Consumer Startups in 2025
Even in 2025, the market environment for consumer founders remains challenging, but there are dynamic segments with great potential. Despite difficult conditions, opportunities arise for founders who are aware of VC concerns, act counter-cyclically, and focus on sustainable, scalable, and profitable business models.
As clearly demonstrated by the VCs mentioned above: AI, health, challenger brands with exit potential, personalization, community growth, and unique consumer experiences are in demand. Those who clearly differentiate themselves in these areas can successfully position themselves and secure funding even in a tough market environment.
Which consumer trends do you see for 2025? Write to us or connect with us!
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
State-backed venture capital firms play a crucial role in fostering innovation by funding startups in strategic industries. This article highlights 45 key state-affiliated VC firms in Germany.
Capvisory Insights
Venture capital exclusively for German startups
Top 45 state-backed venture capital investors you should know in Germany
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Many founders are unaware that Germany has a range of publicly funded venture capital (VC) funds explicitly targeting German startups.
These government-backed VCs complement private investors and provide startups based in Germany with valuable opportunities to secure competitive funding.
At Capvisory, we have integrated these so-called “matching facilities” into several fundraising projects, collaborating with funds such as HTGF, IBB, ILB, BayernCapital, and various MBGs.
The landscape of government-backed venture capital in Germany is complex and heavily influenced by federalism. Each state prioritizes the topic differently and maintains its own investment funds. This is where our updated Capvisory List2025 comes in: As experts in fundraising and exit processes for tech startups, we provide a concise overview to help founders quickly identify the right contacts in their region.
State-backed venture capital can be broadly categorized into four groups:
National (semi-)governmental VC funds investing directly (e.g., High-Tech Gründerfonds)
State-level SME investment companies, known as ‘Mittelständische Beteiligungsgesellschaften’ (MBGs) (e.g., BayBG, MBG Baden-Württemberg)
Private VC funds with a public institution as anchor investor (e.g., Gründerfonds Ruhr)
Fund-of-funds and institutional investors (e.g., KfW Capital)
This article focuses on regional and national (semi-)governmental VC funds that invest directly in startups, private VCs with a public institution as anchor investors, as well as state-level SME investment companies (MBGs). For founders, this list serves as a valuable resource to find the right investor for their next funding round.
Why does state-backed venture capital exist?
The German government provides equity capital through various funds and instruments to support innovative startups and SMEs. Early-stage startups, in particular, often struggle to secure venture capital. Publicly funded VCs help bridge this funding gap—especially in strategically important industries such asDeep Tech, ClimateTech, Life Sciences, and Defense. In contrast, these funds rarely invest in sectors like Consumer, Lifestyle, or Web 3.0.
How do state-backed VC investments work?
State-backed investment firms often act as co-investors, partnering with private VC funds or business angels. In most cases, the private investor matching is structured at 30/70 or 50/50, meaning startups may only need to raise 30% from private investors to receive 70% in government-backed capital. However, the application, selection, and due diligence process is generally the same as with traditional venture investors.
Many of these funds focus on Seed or Series A rounds, often with the potential for follow-on investments. An exception is the DTCF, which enters at a later stage, offering investments starting at €10 million.
Each government-backed investment firm has specific focus areas, often aligned with political priorities and economic trends. Currently, many funds prioritize Green Tech, Climate Tech, Deep Tech, Energy, and Artificial Intelligence (AI). In recent years, Defense Tech has also gained momentum.
Mezzanine capital & silent partnerships: Beyond traditional equity investments, some government-backed funds also offer hybrid financing structures, such as mezzanine capital or silent partnerships.
The 5 major nationwide state-backed VC funds in Germany
These state-backed VC investors operate on a nationwide level in Germany. Every startup seeking venture capital should be aware of these players.
1. High-Tech Gründerfonds (HTGF) Stage: Pre-Seed, Seed Ticket Size: Up to €1 million in the first round, up to €30 million in follow-ons Industry Focus: Digital Tech, Industrial Tech, Life Sciences, Chemistry & adjacent fields Geographic Focus: Germany (only German startups) Sponsor: Federal Ministry for Economic Affairs and Climate Action, KfW Capital & private investors
2. Coparion (in its original form) Stage: Seed, Series A, Series B Ticket Size: Co-investments up to €15 million per startup (50% of the round must come from private investors) Industry Focus: Sector-agnostic Geographic Focus: Germany (only German startups) Sponsor: KfW Capital, ERP special fund, private banks
3. DeepTech & Climate Fund (DTCF) Stage: Series A and beyond Ticket Size: Start at €10 million per investment (acts as an anchor investor alongside private investors) Industry Focus: Deep Tech, Industrial Tech, Computing, Climate, Life Sciences & adjacent fields Geographic Focus: Germany (only German startups) Sponsor: Zukunftsfonds, ERP special fund, KfW Capital
4. SPRIND – German Agency for Breakthrough Innovations Stage: “Early-stage innovation projects” Ticket Size: Various funding instruments, often up to €1 million Industry Focus: Sector-agnostic, focused on “breakthrough innovations” Geographic Focus: Germany & EFTA countries Sponsor: Federal Ministry of Education and Research (BMBF) & Federal Ministry for Economic Affairs and Climate Action (BMWK)
5. LBBW Venture Capital Stage: Seed, Series A Ticket Size: Up to €3 million Industry Focus: Enterprise IT, IoT, Industry 4.0, AI/ML, FinTech, Big Data & Analytics in various industrial sectors, drug development, diagnostics, MedTech, and Healthcare IT Geographical Focus: DACH region Sponsor: Landesbank Baden-Württemberg (LBBW)
Insights from our experience with state-backed VCs
At Capvisory, we have supported multiple fundraising rounds involving state-backed investment funds and have had the opportunity to connect with many fund managers. Naturally, we are particularly active in Berlin with IBB Ventures, but we have also collaborated with others such as IFB Innovationsstarter GmbH in Hamburg, HTGF or NBank Capital.
Key takeaways from working with state-backed VCs:
Great opportunity for local startups: State-backed VCs often have a strong regional focus, specifically supporting startups from their respective areas. This provides local startups with funding opportunities they might not receive from nationwide or purely private VCs.
Co-investments with private investors: State-backed VCs rarely invest alone—they typically match private investments or act as co-investors. This can be highly beneficial if your startup has already secured commitments from private investors. Additionally, the ability to double the invested capital is a strong argument when convincing private investors to participate. Most regions have well-known and respected private investors, and their commitment signals credibility to the state-backed VC.
Slower processes compared to private VCs: Unlike fully private investors, state-backed funds are bound by bureaucratic approval processes. This can lead to longer due diligence and delayed investment decisions, making the funding process slower than with private VCs.
Capital availability even in downturns: Since these funds are publicly financed, their investment decisions are less dependent on market cycles compared to private VCs. Even in challenging years, when private investors become more cautious, state-backed VCs can continue investing within their pre-allocated budgets.
Tip for Founders: Start by reaching out to your regional state-backed VC, development bank, or mid-sized investment company (Mittelständische Beteiligungsgesellschaft). These institutions oversee most funding programs and offer the fastest and most tailored advice. Taking this step early makes sense—first, because their due diligence process can take time, and second, because a soft commitment from them can serve as a catalyst for converting private investors.
The 19 most important regional state-backed venture capital firms in Germany (2025)
Most state-backed regional investment firms—aside from MBGs—are funded by federal states or are subsidiaries of regional development banks. These development banks are state-owned or semi-public financial institutions, primarily financed through federal or state funds. They pursue economic policy objectives and are not profit-oriented.
Below is a list of the most important regional players, including their stage focus, ticket sizes, and industry specializations.
IBB Ventures (Berlin) Stage: Seed and Series A Ticket Size: Up to €1 million initially, follow-up investments up to €5 million Industry Focus: Software & IT, Healthcare, Industrial Technologies, Consumer & Digital, Impact Geographical Focus: Berlin Sponsor: Investitionsbank Berlin (IBB)
Bayern Kapital (Bavaria) Stage: Seed and growth financing Ticket Size: €250,000 to €25 million Industry Focus: Biotechnology, Life Sciences, Medical Technology, Software & IT, Environmental Technology, Nanotechnology, Materials & New Materials Geographical Focus: Bavaria Sponsor: LfA Förderbank Bayern
NRW.BANK Venture Fonds (North Rhine-Westphalia) Stage: Seed to growth financing Ticket Size: Up to €15 million (initial investment up to €5 million) Industry Focus: Climate Tech, Information and Communication Technologies (ICT), Artificial Intelligence (AI), Enterprise Software, SaaS, IT Security, Life Sciences (Diagnostics, Pharmaceuticals, Medical Technology), Robotics, Photonics, New Materials, Digitalization of Industry, Economy, and Administration, Digital Business, as well as innovative business models Geographical Focus: North Rhine-Westphalia Sponsor: NRW.BANK
Gründerfonds Ruhr(North Rhine-Westphalia) Stage: Seed Ticket Size: undisclosed Industry Focus: Sector-agnostic, with a particular interest in B2B tech in Life Sciences, Cybersecurity, and Industry 4.0 Geographic Focus: Nationwide in Germany, with a special focus on the Ruhr region Sponsor: Private investors and NRW.BANK as anchor investor.
Brandenburg Kapital (Brandenburg) Stage: Seed to Series B Ticket Size: Up to €7.5 million Industry Focus: Industry, Information and Communication Technology (ICT), Healthcare, Life Sciences Geographical Focus: Brandenburg Sponsor: Investitionsbank des Landes Brandenburg (ILB)
IFB Innovationsstarter GmbH (Hamburg) Stage: Seed, Series A Ticket Size: Up to €7 million Industry Focus: Industry-agnostic Geographical Focus: Hamburg Sponsor: Investitions- und Förderbank Hamburg (IFB Hamburg)
Saarländische Wagnisfinanzierungsgesellschaft (SWG) (Saarland) Stage: Seed, Series A Ticket Size: Up to €2 million Industry Focus: Industry-agnostic Geographical Focus: Saarland Sponsor: Saarländische Investitionskreditbank AG (SIKB)
Technologiegründerfonds Sachsen (TGFS) (Saxony) Stage: Seed, Series A Ticket Size: Up to €5 million Industry Focus: ICT (Software/Industry 4.0/IoT/Big Data Analysis), Semiconductor and Microsystem Technology, Medical Technology/Health Sciences, Electronics, Sensors, New Materials, New Media, Cleantech Geographical Focus: Saxony Sponsor: Free State of Saxony, Sächsische Aufbaubank
IBG Beteiligungsgesellschaft Sachsen-Anhalt (Saxony-Anhalt) Stage: Seed, Series A, Series B Ticket Size: Up to €10 million per investment Industry Focus: Energy, Mechanical and Plant Engineering, Resource Efficiency, Healthcare and Medicine, Mobility and Logistics, Chemistry and Bioeconomy, Nutrition and Agriculture Geographical Focus: Saxony-Anhalt Sponsor: State of Saxony-Anhalt Management: bmp Ventures
GENIUS Venture Capital GmbH (Mecklenburg-Western Pomerania) Stage: Pre-Seed, Seed, Series A Ticket Size: Up to €1.5 million per investment Industry Focus: Industry-agnostic, but focused on ICT, Life Sciences, Environmental and Energy Technology, Mechanical Engineering Geographical Focus: Mecklenburg-Western Pomerania Sponsor: Technologie- und Gewerbezentrum e.V. Schwerin/Wismar
Innovationsfonds Schleswig-Holstein (Schleswig-Holstein) Stage: Not specified Ticket Size: Up to €1 million per investment Industry Focus: Industry-agnostic Geographical Focus: Schleswig-Holstein Sponsor: Investitionsbank Schleswig-Holstein (IB.SH), MBG Schleswig-Holstein mbH
NBank Capital (Lower Saxony) Stage: Seed to mid-sized companies Ticket Size: Not specified Industry Focus: Industry-agnostic Geographical Focus: Lower Saxony Sponsor: Investitions- und Förderbank Niedersachsen (NBank)
BBM (BAB Beteiligungs- und Managementgesellschaft Bremen mbH) (Bremen) Stage: Seed, Series A Ticket Size: Up to €1.5 million per investment Industry Focus: Industry-agnostic Geographic Focus: Bremen Sponsor: Bremer Aufbau-Bank (BAB)
Capnamic Specialty Fund Bremen (Bremen) Stage: Seed, Series A Ticket Size: Up to €2 million per investment Industry Focus: Aerospace, Logistics, Nutrition, AI, or relevant key industries Geographical Focus: Bremen Sponsor: Capnamic, Sparkasse Bremen, Bremer Aufbau-Bank (BAB) Management: Capnamic
Hessen Kapital III (Hesse) Stage: Seed, Series A Ticket Size: €0.1 to €1.5 million Industry Focus: Industry-agnostic Geographical Focus: Hesse Sponsor: BMH Beteiligungs-Managementgesellschaft Hessen mbH
Technologiefonds Hessen (TFH) (Hesse) Stage: Late Seed, Series A Ticket Size: Up to €2 million Industry Focus: IT, Fintech, Insurtech, Life Sciences, Deep Tech, IoT, Cleantech, with a specific focus on sustainable models Geographical Focus: Hesse Sponsor: BMH Beteiligungs-Managementgesellschaft Hessen mbH
bm|t Beteiligungsmanagement Thüringen GmbH (Thuringia) Stage: Seed to mid-sized companies (Revenue <€75 million) Ticket Size: Up to €10 million Industry Focus: Industry-agnostic (including Life Sciences, IT, Optoelectronics) Geographical Focus: Thuringia Sponsor: Thüringer Aufbaubank
Innovationsfonds Rheinland-Pfalz III (Rhineland-Palatinate) Stage: Seed to mid-sized companies (Revenue <€75 million) Ticket Size: Up to €10 million Industry Focus: Industry-agnostic (including Life Sciences, IT, Optoelectronics) Geographical Focus: Rhineland-Palatinate Sponsor: Investitions- und Strukturbank Rheinland-Pfalz (ISB)
L-Bank Investment Program (Baden-Württemberg) Stage: Startups and mid-sized companies Ticket Size: Up to €7.5 million Industry Focus: Industry-agnostic Geographic Focus: DACH region Backer: L-Bank – State Bank of Baden-Württemberg
List of the 13 regional investment companies (Mittelständische Beteiligungsgesellschaften (MBG)) from which we know they work with starups
The MBGs are typically private institutions with close ties to SMEs, often backed by chambers of commerce, banks, or industry associations. They are funded through returns from previous investments, public funds, and private investors.
Below are the MBGs that we know work with startups and entrepreneurs:
MBG Baden-Württemberg (Baden-Württemberg) Stage: Seed to Series A financing, SMEs Ticket Size: €0.2 to €3.0 million Industry Focus: Innovative and technology-oriented startups Geographical Focus: Baden-Württemberg Website: www.mbg.de/venture-capital/
BayBG Bayerische Beteiligungsgesellschaft mbH (Bavaria) Stage: Pre-Series A to Series B, SMEs Ticket Size: Up to €5 million initial investment Industry Focus: Industry-agnostic Geographical Focus: Bavaria Website: www.baybg-vc.de
MBG Berlin-Brandenburg (Berlin and Brandenburg) Stage: Startup founders and SMEs Ticket Size: Individual, depending on the chosen program Industry Focus: Industry-agnostic Geographical Focus: Berlin and Brandenburg Website: www.mbg-bb.de
MBG Schleswig-Holstein (Schleswig-Holstein) Stage: Seed to growth financing, SMEs Ticket Size: Up to €1 million Industry Focus: Industry-agnostic Geographical Focus: Schleswig-Holstein Website: www.mbg-sh.de
MBG Hamburg (Hamburg) Stage: Startup foundation, Seed, Series A, SMEs Ticket Size: Up to €2.5 million Industry Focus: Industry-agnostic Geographical Focus: Hamburg Website: www.mbg-hh.de
MBG Hessen (Hesse) Stage: Early stage, growth, SMEs Ticket Size: Up to €10 million, depending on the specific fund Industry Focus: Industry-agnostic; support for technology-oriented ventures Geographical Focus: Hesse Website: www.bmh-hessen.de
MBG Mecklenburg-Vorpommern (Mecklenburg-Western Pomerania) Stage: R&D phase to market launch, SMEs Ticket Size: Up to €1.5 million Industry Focus: Industry-agnostic Geographical Focus: Mecklenburg-Western Pomerania Website: www.mbg-mv.de/programme/mv-innostartvc
MBG Niedersachsen (Lower Saxony) Stage: Startup foundation, SMEs Ticket Size: Up to €0.2 million Industry Focus: Industry-agnostic Geographical Focus: Lower Saxony Website: www.mbg-hannover.de
MBG Rheinland-Pfalz (Rhineland-Palatinate) Stage: Startup foundation, growth, succession, SMEs Ticket Size: Up to €1.5 million Industry Focus: Industry-agnostic Geographical Focus: Rhineland-Palatinate Website: www.bb-rlp.de
MBG Sachsen (Saxony) Stage: Financing for small and medium-sized businesses Ticket Size: Individual Industry Focus: Industry-agnostic Geographical Focus: Saxony Website: www.mbg-sachsen.de
MBG Sachsen-Anhalt (Saxony-Anhalt) Stage: Equity investments for mid-sized companies Ticket Size: Individual Industry Focus: Industry-agnostic Geographical Focus: Saxony-Anhalt Website: www.mbg-sachsen-anhalt.de
MBG Thüringen (Thuringia) Stage: Support through silent and open participations Ticket Size: Individual Industry Focus: Industry-agnostic Geographical Focus: Thuringia Website: www.mbg-thueringen.de
Conclusion on state-backed venture capital investors
State-backed venture capital firms are sometimes overlooked by founders, yet they can be a valuable funding source for German startups. They not only provide consistent capital—even during economically uncertain times—but also act as co-investors, facilitating access to private venture capital.
For regional startups in particular, these investors offer significant opportunities by specifically supporting local businesses. Despite occasionally bureaucratic processes, they serve as a viable alternative or complement to purely private VCs. The list above provides founders with a clear overview of the most important state-backed investors, making it easier to connect with the right funding partners.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising rounds, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Each phase—pre-seed, seed, Series A, and beyond—requires unique financing strategies. This guide quickly overviews key milestones, benchmarks, and funding approaches, helping founders communicate effectively with stakeholders and investors.
Capvisory Insights
Understanding the stages of startup funding
Key startup financing stages and benchmarks (2025)
The specialized Berlin-based M&A boutique Capvisory supports startups in Seed and Series A funding rounds as well as in exit processes. In this content piece, we provide an overview of key startup financing stages and benchmarks for 2025.
This brief overview is designed for newcomers to the startup ecosystem who want to get up to speed quickly. It not only explains the individual funding stages but also provides concrete benchmarks, such as valuations, dilution, and growth metrics. Additionally, we offer a concise perspective on when (in our view) it makes sense to collaborate with fundraising or M&A boutiques.
Note: The stages are intended as a general guideline for all participants in the ecosystem to more easily gauge a startup’s progress. However, every startup journey is unique and may not necessarily fit into these standardized frameworks. Benchmarks vary depending on industry, country, and economic conditions, and should therefore only be viewed as a rough guideline.
1. Pre-Seed Phase: The Concept Phase
The pre-seed phase marks the starting point of a startup’s journey. The primary goal is to identify a clear problem and define an innovative solution.
This phase demands significant initiative from the founders, as it is often self-funded. However, founders with an attractive track record or a particularly innovative idea may attract professional investors willing to finance this phase based solely on the team, the idea, and a pitch deck. Examples include Berlin-based investor seed + speed or Munich-based Picus Capital. No revenues are typically expected at this stage.
Focus: Ideation, market research, founding team, prototype (MVP) development
Funding: Self-funding, grants, accelerator programs (e.g., Reaktor), crowdfunding, family offices, business angels, or specialized pre-seed VCs
Valuation: €1M–€5M
Investment Ask: €0.3M–€2M
Dilution: 5%–15%
Team Size: 1–5 employees
Metrics: Typically not relevant yet
Should you work with a fundraising advisor? At this stage, we believe it makes sense for founders to handle fundraising themselves. This helps build a vital network, gather feedback on their idea, and gain initial experience with the fundraising process for later stages.
Risk: High risk for investors. Over 90% of startups fail after this phase.
2. Seed Phase: Testing Market Response
In the seed phase, the startup refines its concept and takes its first steps toward market entry. The goal is to validate product-market fit (PMF) and acquire initial paying customers, laying the foundation for further growth.
Focus: Company formation, product development, market entry, acquiring initial customers, and ensuring high customer satisfaction
Funding: Business angels, crowd investing, early-stage venture capital funds (e.g., Cherry Ventures), grants, family offices, strategic investors
Valuation: €5M–€15M
Investment Ask: €1M–€5M
Dilution: 15%–20%
Team Size: 5–30 employees
Metrics: Revenue of €0–€2M, MoM growth >10%, high retention rate, and efficient customer acquisition costs (CAC)
Should you work with a fundraising advisor? Depending on the size and complexity of the round and your growth objectives, involving an advisor—at least in a consulting role—can be worthwhile. At Capvisory, we typically invest 300–400 hours per mandate in this phase, freeing up founders to focus on sales, product development, and hiring (a clear ROI).
Risk: Still a very high risk for investors. Approximately 75% of startups fail after this phase.
3. Series A: The Growth Phase
The Series A financing round marks the startup’s transition into the growth phase. The focus is on scaling operational processes and achieving substantial revenue growth. Startups often aim to increase market share and expand their existing customer base. This phase usually makes the startup more visible within its industry, as it positions itself as a new player in the market.
Focus: Growth, diversification, hiring, and building organizational structures
Funding: Venture capital funds (e.g., Project A), family offices, venture debt, or strategic investors (e.g., established companies in the same sector)
Valuation: €15M–€100M
Investment Ask: €5M–€30M
Dilution: 15%–25%
Team Size: 30–75 employees
Metrics: Revenue of €0.5M–€10M, YoY revenue growth >50%
Should you work with a fundraising advisor? Fundraising advisors can provide significant value at this stage by driving the process alongside founders at an operational level. Founders benefit from advisors’ expertise, investor networks, and operational support, saving countless hours of time. At this stage, Capvisory invests an average of 600+ hours per mandate, allowing founders to focus on sales, product development, and hiring—a clear ROI.
“Advisors can add a lot of value when raising a round of capital, particularly at the later stages. Such advisors can help streamline the process by front-loading a lot of the diligence and preparation, allowing you to focus more closely on running the company.”
— Steve McDermid, Former Partner at Andreessen Horowitz
Risk: There are currently no reliable studies on failure rates for European startups after each funding stage. However, it is estimated that approximately one-third of startups fail after Series A. The definition of “failure” remains subjective, as even uneconomical exits are often presented as successes. From our perspective, the actual failure rate from an investor’s standpoint is likely even higher—particularly during the 2022–2024 period.
4. Series B: Scaling and Market Penetration
The Series B phase signifies the transition from product-market fit to aggressive scaling. Companies in this phase aim to achieve market dominance in their segment and lay the foundation for international expansion. Revenue growth and efficiency improvements are driven by expanding sales, marketing, and operational structures.
Professional management, well-established processes, and strong KPIs become increasingly critical to attract investors.
Focus: Market leadership in existing markets, expansion into new regions or industries (organically or via M&A), preparation for an exit (IPO, trade sale), or achieving sustainable profitability
Investment Ask: €10M–€200M, depending on expansion and M&A plans
Dilution: 5%–20%, depending on the startup’s negotiation leverage, market conditions, and financing structure
Team Size: 300–1,000+ employees, with highly specialized teams across departments
Metrics: Revenue >€30M, growth rate of 1.2x–2x, burn multiple <1.5, often achieving initial or sustained profitability
Should you work with a fundraising advisor? Yes, similar to Series A
Risk: Low risk of total loss. The main risks stem from regulatory changes, challenges in M&A integrations, or loss of market share.
5. Series C and Beyond: Maturity Phase
The Series C phase and subsequent funding rounds are highly individualized. As startups grow in size and maturity, general benchmarks become less relevant due to variations in industry, business models, and strategic goals.
Companies at this stage have an established market presence, significant revenues, and often pursue strategic objectives such as market dominance, M&A transactions, or an IPO.
Focus: Market leadership in existing markets, expansion into new regions or industries (organically or via M&A), preparation for an exit (IPO, trade sale), or achieving sustainable profitability
Funding: Growth funds, private equity investors, strategic partners, debt financing, or public markets (IPO)
Valuation: Over €180M, often between €200M–€3B
Investment Ask: €10M–€200M, depending on expansion and M&A plans
Dilution: 5%–20%, depending on negotiation leverage, market conditions, and financing structure
Team Size: 300–1,000+ employees, often with highly specialized teams across departments
Metrics: Revenue >€50M, growth rate of 1.2x–2x
Should you work with a fundraising advisor? Yes, similar to Series A
Risk: Low risk of total loss
Focus section: At what stage does it make sense for startups to engage M&A advisors?
At Capvisory, we operate as M&A advisors, so we cannot answer this question entirely objectively. However, many experienced entrepreneurs would agree that starting from Series A and beyond, there are compelling arguments for working with an M&A advisor:
Access to a broader investor network: M&A advisors have extensive networks and can connect startups with investors they might not reach on their own. Especially in Series A rounds, a strategically diverse investor process is critical.
Process optimization: Preparing pitch decks, financial models, and due diligence materials is highly time-consuming. An M&A advisor handles many of these tasks, allowing the founding team to focus on core business operations.
Negotiation expertise: Negotiating valuation metrics, term sheets, and investor agreements can be complex. Advisors bring the experience needed to secure better terms and avoid potential pitfalls.
Market expertise: M&A advisors understand current market dynamics and trends. They can help position the company optimally or identify alternative financing options.
Conclusion: Startup Funding Stages
Defining distinct funding stages with clear terms provides a general framework for orientation and improves communication among all stakeholders. Each stage demands tailored financing strategies and operational approaches. A solid understanding of the specific phase a startup is in helps streamline communication with stakeholders, particularly with potential investors.
Founders should regularly evaluate their funding needs and strategic priorities to ensure sustainable growth and long-term success.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Fundraising for consumer startups in 2025 is no easy task. That’s why we’ve compiled a list of over 30 handpicked venture capital firms that specialize in consumer-focused investments and are actively backing European consumer startups in 2025.
Capvisory Insights
Consumer Startups
30+ handpicked consumer VCs that actively invest in 2025
The specialized Berlin-based M&A boutique Capvisory supports startups in Seed and Series A funding rounds as well as in exit processes. In this content piece, we share our perspective on the current fundraising climate in the consumer segment.
In 2025, the fundraising landscape for consumer startups remains challenging. Week after week, new statistics emerge, highlighting just how tough the financing environment is for this segment.
In late 2023, Crunchbase published the alarming headline: “VCs No Longer Do DTC.” Unfortunately, the situation has barely improved since, and the outlook for 2025 shows little sign of relief.
Consumer startups navigate a difficult fundraising landscape
A brief note on terminology: Consumer startups are companies that sell products directly to end customers (B2C), often leveraging innovative business models and a strong focus on brand building. These startups operate in markets such as Direct-to-Consumer (DTC), Food & Beverage, Fitness, or E-commerce, using digital platforms to reach their target audience. Typical examples include brands like Glossier, Oatly, or Peloton.
The fundraising market for consumer startups has drastically changed since its peak in 2021 (in terms of funding volume). While investors back then heavily prioritized growth — with notable examples such as the German delivery service Gorillas — today’s focus has shifted towards profitable expansion. This strategic pivot led to a dramatic decline in funding for these companies: Between 2021 and 2023, investment volume to companies at the intersection of consumer products and E-commerce dropped by a staggering 97% (Source: Crunchbase).
A recent analysis by Silicon Valley Bank revealed that, among the 100 most active VC firms, consumer investments accounted for just 6% of deals in 2024 — only half the share seen two years earlier. This decline highlights the long-term trend of the consumer segment steadily losing market share.
To what extent consumer tech can experience a renaissance with the current AI wave remains to be seen. James Currier, General Partner at VC firm NFX, offers an intriguing perspective on this topic: Consumer is Back – And Why It’s Been So Hard Since 2014.
In this challenging environment, consumer startups are understandably seeking new ways to grow more efficiently and diversify their funding sources. Many founders are extending the runway of existing financing rounds and focusing on organic growth strategies to enhance their appeal to investors. Despite the obstacles, opportunities to secure capital still exist—especially for startups with technically advanced concepts, above-average traction, such as the recently funded restaurant app NeoTaste, or experienced founders.
This is where our list of over 30 active and carefully selected venture capital investors comes in. The selection includes only VCs with a clearly defined commitment to the consumer sector and who have made at least one investment in the past 12 months (as of January 2025).
Venture capital investors actively backing consumer startups in 2025
Fundraising for consumer startups is no easy task these days. If you’re looking for investors, feel free to reach out to us. At Capvisory, we don’t just assist consumer startups with fundraising or exit processes; we also provide a quick, well-founded assessment of whether fundraising is likely to succeed in your specific case.
P.S. At Capvisory, we’re constantly searching for relevant funds to keep our internal database — featuring over 20,000 investors from around the world — up to date. This tool allows us to achieve the best possible fundraising results for our clients. If you know of an active consumer VC that we should add to the list, let us know.
If you’re interested in the latest funds with dry powder, check out our monthly Fund Tracker.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Cold outreach remains a relevant way to connect with venture capital investors in 2024 – even without an extensive network. In our article, we share best practices based on recent mandates to help founders get the most out of their outreach efforts.
Capvisory Insights
Cold Outreach in Fundraising Processes
Startup Fundraising: A/B Testing Response Rates Across Investor Target Groups (VC)
The specialized Berlin-based M&A boutique Capvisory supports startups in late-seed and Series A financing rounds. In this expert article, we share our practical experience.
In M&A processes, and particularly in startup fundraising, targeted outreach to financial investors is a core task. While we at Capvisory, like many founders, prefer to leverage warm networks due to their higher success rates, these networks are often not enough to identify a sufficiently large pool of potential investors. At that point, cold outreach becomes indispensable for many startups seeking to secure suitable capital providers.
Founders frequently approach us with two key questions related to the response and call rates of investors:
Should founders focus on contacting senior investment team members, such as fund partners, principals, or investment directors, or should they target junior fund staff, like analysts or associates?
How effective are alternative channels, such as contact forms on websites or central dealflow email addresses like deals@vcfund.com?
To address these questions, we have been analyzing extensive data from our live projects for years. Below, we share the results of our analysis of current mandates from 2025 to help founders maximize the effectiveness of their cold outreach efforts.
Methodology: Analyzing Outreach Channels
To answer these questions systematically, we analyzed data from current fundraising mandates in Capvisory’s impact sector. In total, over 1,300 venture capital contacts were approached through cold outreach, providing a solid foundation for our findings.
The outreach channels analyzed (with roles varying slightly across funds) included:
Senior Investment Team: Members of senior management, such as managing partners, investment directors, and principals.
(Junior) Investment Team: Roles like analysts, associates, investment managers, and similar positions.
Dealflow Email Addresses: Specific addresses for inbound dealflow, such as deals@vcxyz.com.
Contact Forms: Forms hosted on investors’ websites, such as Typeform.
In addition to tracking the response rate—the percentage of replies to outreach—we also measured the call rate, which reflects the ratio of investors contacted to pitch calls scheduled.
Results of the Analysis
Overall, the data revealed a response rate of over 30% for cold outreach (compared to fundraising benchmarks of 3-20%) and a call rate of 5-15% (benchmarks: 0.5-3%).
Seniors and Juniors Perform Similarly
Our analysis showed that the response rates for senior and junior team members were nearly identical. Contrary to expectations, “the higher the rank, the better the response” does not seem to hold true.
However, junior team members slightly outperformed seniors when it came to call rates. This suggests that juniors, often acting as the first point of contact, are more available and responsible for introductory calls. Senior team members, on the other hand, are typically more involved in later decision-making stages.
Generic Email Addresses Perform Worst
Unsurprisingly, generic email addresses like deals@vcxyz.com performed the worst for both response and call rates. This is likely because such emails are routed to general inboxes, where they are deprioritized or not forwarded to the relevant decision-makers.
Contact Forms as the Most Effective Channel
Surprisingly, contact forms outperformed all other channels in both response and call rates. These forms not only generated replies but also successfully led to pitch calls.
This result is unexpected, as contact forms are often seen as impersonal and less effective at creating a direct connection than tailored emails or phone calls.
One possible explanation is that well-structured forms, especially at larger VCs, are tied to clearly defined and efficient internal processes. These systems ensure that inquiries are systematically reviewed and promptly forwarded to the appropriate decision-makers. This streamlines internal workflows and increases the likelihood of receiving a response.
Conclusions and Recommendations
Nothing Beats Warm Outreach Personal connections almost always guarantee a response, and the likelihood of securing an intro call increases significantly. Warm outreach should therefore always be the preferred strategy when engaging with potential investors.
Personalized Cold Outreach Still Works The good news for founders without a vast network of VC investors: cold outreach remains effective in 2025. However, it requires thorough research and highly personalized messaging to resonate with the target investors.
Use Contact Forms When Available Our data reveals that contact forms are, in fact, the most effective channel for cold outreach to venture capital investors, both in terms of response rate and securing intro calls. Startups should not overlook this option during outreach efforts. However, it’s important to note that not all VCs provide contact forms. In 2024, only about 1 in 7 investors offer such forms.
Prioritize Reaching Out to Partners When Possible Our analysis shows that senior and junior team members achieve comparable response and call rates. However, partners are often the ultimate decision-makers. Direct outreach to partners increases the likelihood of connecting with key players rather than getting stuck at the junior level. In the worst-case scenario, your inquiry will be forwarded to the junior team anyway. For this reason, partners should be prioritized in cold outreach.
That said, these messages must be highly personalized. Take time to understand the fund’s investment thesis and explore potential synergies within their portfolio. Bonus tip: portfolio companies can also serve as a warm introduction channel.
Generic Email Addresses as a Last Resort Generic email addresses should only be used if no direct contacts are available. Their efficiency is significantly lower compared to other outreach methods.
Conclusion
Structured cold outreach remains an essential part of most fundraising processes, especially in venture capital. Our findings highlight the channels most likely to generate responses and lead to intro calls.
While these results are not universally applicable, startups, M&A advisors, and CFOs can leverage this data to optimize their outreach strategies and maximize their chances of success.
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
Discover best practices for navigating the Series-A fundraising process with insights from Capvisory, a Berlin-based M&A boutique. Learn essential steps, strategies, and tips to successfully prepare and engage investors for your startup’s next funding round.
Capvisory Insights
Preparing for your Series-A round
Best Practice: The Series-A Fundraising Process
The specialized Berlin-based M&A boutique Capvisory supports startups in Seed and Series-A funding rounds. In this article, we share our practical insights from recent funding rounds in Germany.
The fundraising process for startups is challenging and consistently ranks among the biggest hurdles founders must overcome. In this insights article, we provide an overview of the typical steps involved in a capital raise in Germany or the DACH region. As a founder, you can use these steps as a checklist for your own round.
Disclaimer: The process varies from company to company, but to reduce complexity, we present only a simplified, standardized outline here.
Typically, the process leading to a funding round involves 12 steps. Below, we provide a brief overview of each of these steps.
1. Company Analysis and Goal Setting
Before the actual fundraising begins, a company analysis is essential. During this phase, founders evaluate the current key metrics of the company and set clear objectives for the capital raise.
Please use these KPIs only as a rough guideline to position your startup. Benchmarks can vary significantly depending on factors such as country, industry, and stage. Data source: XAnge Series-A Blueprint.
How much capital is needed, and which milestones should be achieved with it? Is venture capital truly the right form of financing, or would alternatives such as debt financing or crowdfunding be more suitable? Is the company ready to present itself to external investors?
These questions form the foundation of the entire fundraising process and are critical to the success of the funding round.
2. Development of the Fundraising Strategy
Once the current state of the company is analyzed and goals are defined, the fundraising strategy can be developed. The focus for this article is on venture capital financing, although alternative options should also be considered in the initial phase.
Venture capital investors review hundreds of companies annually, evaluating factors such as market attractiveness, competition, go-to-market strategy, the founding team, the skillsets, first hires, and so on. For more innovative products, the product idea takes center stage, whereas for other business models, execution and existing traction are key. A successful fundraising strategy hinges on a profound understanding of the company. It’s essential to present insight effectively, and to craft a compelling equity story that resonates with potential investors.
It’s also crucial to have an in-depth understanding of the VC industry and the mindset of investors. Familiarity with concepts like the venture capital power law, the relationship between a fund and its limited partners, as well as the internal structures and hierarchies of funds, is essential at least at a basic level.
A core component is defining the right target group of investors:
What type of venture capital is suitable for your company? (e.g., venture capital funds, corporate venture capital, private equity)
What stage of funding is your startup in? (Seed, Series A, Series B)
In which “vertical” is your company active? (e.g., fintech, climate tech, deep tech)
Timing is also critical: raise funds only when you are truly ready and can build momentum, such as through company progress or favorable market conditions. Plan for a period of 6–9 months from the start of the fundraising process to the final transfer of funds. Often, at least one founder works full-time on securing funding. Early involvement of lawyers, tax advisors, and potentially M&A advisors can also be valuable.
Tip: Have you ever wondered which month of the year is the best to approach investors? Check out our article: The Best Timing for Fundraising.
3. Creating the Investor Package (Pitch Deck, Financial Plan)
A pitch deck and financial plan are critical for successfully engaging investors. The pitch deck serves as a “teaser,” succinctly presenting the business idea in an engaging manner to spark interest.
The financial plan provides more depth, presenting detailed historical figures, how the raised capital will be allocated, and the future assumptions the team has made.
Note: The value of an investment memo is often debated. Some founders swear by it, while others find it unnecessary. In our opinion, it can be a helpful supporting document, especially for more complex businesses, but it’s not essential to complete a funding round.
4.Setting Up the Data Room for Due Diligence
Once initial discussions with investors begin, having a well-structured data room is essential. This should include all documents investors need for due diligence, such as financial statements, legal documents, contracts, and other sensitive information.
A well-maintained data room streamlines the review process and fosters trust. Ideally, the data room should be prepared before reaching out to investors so you can respond promptly when interest arises.
5. Researching Suitable Investors
The next step is identifying specific investors within your chosen categories. Thorough research is key. Here are a few typical questions to ask yourself during the research process:
Which investors are active in your industry and region?
Which investors are engaged in your startup’s development stage (e.g., Seed or Series A)?
Which investors have made investments in the past 12 months?
What are the investor’s typical ticket sizes?
Who is in charge within the investor’s team for startups in your niche?
Ideally, you already have investors in your network whom you can approach “warm.” If not, and if time permits, attending conferences, networking events, and similar gatherings can be worthwhile to connect with VCs and build relationships before the fundraising phase.
For cold outreach, you can create your own long list, use free online directories (e.g., OpenVC), leverage paid tools such as Pitchbook (quite expensive!) or AddedVal (particularly for business angels), or hire a professional dealmaker or M&A advisor.
At Capvisory, for instance, we maintain an in-house, continuously updated database of over 20,000 investors—from established venture capital funds to lesser-known strategic investors. By closely monitoring relevant funding rounds across Europe, we ensure that we have comprehensive, well-researched investor lists for every industry.
6. Crafting Personalized Outreach Messages
Investors value personalized outreach. Standardized messages are generally insufficient. Instead, each potential investor should be addressed individually. Investors want to see that you have taken the time to understand their unique investment thesis and recognize synergies within their portfolio. This significantly boosts your chances.
Example of how the start of a blurb draft might look: Each year, best practices evolve, so it’s valuable to connect with friendly investors, advisors, or fellow founders to gather insights and feedback.
Tip: The best outreach is warm, meaning you already know the investor. This significantly increases the likelihood that they will review your company favorably. However, since most founders do not have an extensive network of VC investors, many ultimately resort to cold outreach. Still, as mentioned earlier, attending conferences and startup events is valuable for building your network and getting to know investors personally.
7. Reaching Out to the Investor Funnel
Once all preparations are complete, the active outreach begins. This involves building an investor funnel (similar to a CRM) that enables systematic and efficient contact with investors. The funnel helps track the progress of the fundraising process and ensures that no potential investor is overlooked. Sound familiar to sales? Indeed, investor outreach shares many similarities with a traditional sales process.
For the CRM, you can use ready-made tools or create a custom Excel solution. At Capvisory, for example, we have developed a CRM for founders that is automatically linked to our database of over 20,000 investors and is used for each mandate.
Tip: Cold outreach often means diving into uncharted waters. Most VCs strive to create a positive experience for founders, but there are occasional negative experiences, such as ghosting. Has this happened to you? Check out our article: How Founders Can Professionally Handle Being Ghosted by Investors.
Investor CRM Dashboard of a German B2B SaaS Startup in Airtable
8. Information Exchange with Interested Investors
Investors who express interest typically request additional information. At this stage, it is crucial to respond quickly and accurately. A smooth flow of information builds investor trust and speeds up the decision-making process.
There’s an anecdote about Sam Altman, who, during his tenure as President of Y Combinator, measured founders’ response times to gauge whether someone was a “great or mediocre founder.” You can find the full article here: Sam Altman tracked how quickly people responded to his texts and emails.
9. Negotiating 2–3 Indicative Offers
The goal should be to secure multiple term sheets from potential lead investors. This creates momentum and allows you to negotiate the terms with leverage. Negotiations can become complex if you lack experience in this area.
While established VC investors typically act fairly due to their vested interest in your long-term success, smaller players might behave differently. It’s advisable to have an experienced entrepreneur by your side or seek support from a specialized lawyer or M&A advisor.
10. Signing the Term Sheets
Signing the term sheet is a significant milestone. It is a non-binding letter of intent that outlines the main terms of the investment and must be negotiated carefully. The term sheet forms the basis for drafting the final investment agreements.
In the industry, there is a belief that reputable, professional investors rarely back out of a term sheet unless due diligence uncovers red flags. The probability of closing the deal increases significantly with the signing of the term sheet.
11. Conducting Due Diligence
Following the term sheet’s signing, the due diligence phase begins. During this period, investors thoroughly review all critical aspects of your company, from financials and legal documents to operational structures. This process ensures that the company meets expectations and there are no hidden risks.
As previously mentioned, you should ideally have the data room for due diligence prepared before your investors request access. If you only start assembling it now, significant delays can easily occur due to missing documents that your investor wants to review.
12. Drafting Final Agreements and Signing
Once due diligence is complete, the final investment agreements are drafted (sometimes this happens in parallel to the DD). This step finalizes all details of the investment. After negotiations and the signing at the notary, the initial payment of share capital by investors typically follows within a few days. In some funding rounds, investors transfer both the share capital and the remaining payment into the capital reserve in one lump sum, making the funds available within 1–2 weeks after signing.
However, it is more common for the share capital to be transferred first while waiting for registration with the commercial register. Once the register is updated, investors transfer the remaining amount. Since updating the commercial register can sometimes take longer (in Germany), it may be several weeks before founders have the full amount in their account. Once the complete capital is received, the fundraising process is successfully concluded.
Capvisory is an independent, founder-led advisory boutique specializing in funding rounds, sell-side M&A, and buy-side M&A for fast-growing companies and their investors.
Learn how founders handle investor ghosting professionally in our article. We explore common reasons for silence and offer practical advice to streamline your fundraising process.
Capvisory Insights
Series: Code of Conduct for VCs
How founders can professionally handle being ghosted by investors
At Capvisory, we support ambitious startups with their Seed and Series A funding rounds. In this article, we share insights from our hands-on experience.
This article is part of our “VC Code of Conduct” series, where we aim to highlight the experiences of our founders during fundraising processes and promote respectful behavior within the VC industry.
What Does “Ghosting” Mean in the VC Context?
“Very exciting, we’ll get back to you by next week.” Every founder has heard it before. Days pass, and after two weeks, you follow up – with no response.
Ghosting occurs when an investor, who previously showed interest, suddenly cuts off communication. This often happens after what seemed like promising conversations. For founders, this means waiting for an answer that, in the worst case, never comes.
Why Does Ghosting Happen?
There are many reasons why investors suddenly stop responding. Here’s a non-exhaustive list:
Overwhelming workload: Many VCs receive hundreds of emails and pitches daily and are often simply overwhelmed, making it difficult to respond to everyone.
Uncertainty: VCs may be unsure whether they want to invest and avoid giving a firm “no” to keep their options open in case they decide to join later.
Strategic waiting: Some VCs wait to see if a lead investor or other investors show interest before making a decision.
Fear of confrontation: It can be uncomfortable to reject someone, especially if it could lead to discussions or justifications. Some investors prefer to avoid communication altogether.
Lack of internal processes: Smaller funds or family offices often lack clear structures and systems to follow up on pitches or provide rejections.
Delaying for better terms: By stalling communication, VCs might wait until the startup’s financial situation worsens, giving them better leverage in negotiations.
Internal crises or zombie funds: Sometimes, the investor isn’t truly active or is dealing with internal problems that aren’t communicated. They continue discussions to keep up appearances but are not in a position to act.
At Capvisory, we support startups during fundraising and have learned from experience: even the best startups experience ghosting. It’s not uncommon for 5-10 out of 100 contacted investors to suddenly break off communication without explanation. But no matter the reason, ghosting should not happen.
Why Is Ghosting So Problematic?
Ghosting is problematic for founders for several reasons. First, they lose valuable time, often waiting weeks for a response that could be spent elsewhere.
Then there’s the uncertainty. Without any feedback, it’s unclear whether the pitch or the presentation had issues, or if the investor simply lost interest. This uncertainty makes it difficult to plan the next steps in the fundraising process.
Moreover, the ongoing silence can severely impact the founders’ morale. The lack of feedback leads to demotivation and self-doubt, making it harder to approach the next challenges with full commitment.
For VCs, the risk lies in damaging their market reputation. Founders are less likely to return to a VC with a new idea or recommend them if they’ve been ghosted in the past. This can negatively impact deal flow.
Additionally, careless handling of deals can lead to missed opportunities, which they may later regret.
Our advice
To avoid ghosting, founders should start with thorough research. Before reaching out to an investor, make sure the VC is a good fit for your industry, stage, and is still actively investing. A targeted approach reduces the risk of engaging with investors who may be more prone to ghosting.
Building a strong network is also crucial. Relationships within the VC ecosystem are invaluable. A warm introduction or direct connection can help you avoid cold outreach and increase your chances of a respectful response.
Patience is key. After your meeting, give the investor one to two weeks to follow up, as they are often managing multiple projects simultaneously. If you haven’t heard back, send a polite reminder, remaining respectful and professional.
If there’s no response after four weeks, it’s time to move on. Consider that investor a “lost lead” and focus on others. Keep the door open for future conversations, but don’t waste any more time.
What can VCs do better?
Set clear expectations: VCs should communicate realistic timelines and next steps from the first meeting, so founders know what to expect. If the team is small and needs more time, that’s fine—just be transparent.
Implement better tools: Using a CRM system or support from EAs can help track pitches and ensure timely responses. This can also be measured in internal KPIs.
Expand capacity: If deal flow becomes overwhelming, VCs should bring on additional resources like junior analysts or assistants to streamline the pitch and communication process.
Review internal guidelines: Establish and regularly update clear team behaviors, especially for new employees, to ensure consistent communication with founders.
Conclusion: Stay Professional
Ghosting is a frustrating, but unfortunately common, part of the fundraising process. The key is not to get discouraged and to always remain professional and polite. Don’t take the behavior personally—be honest with yourself and acknowledge that the investor probably isn’t interested in your startup.
For the sake of completeness: Misconduct can also happen on the founders’ side and can harm VCs. Be fair to each other.
We maintain a list of funds where we’ve observed problematic behavior and report on these patterns in our VC Code of Conduct series.
Capvisory is a Berlin-based fundraising advisory firm for ambitious startups, specializing in the execution of Late-Seed and Series-A funding rounds. Schedule a meeting with us today to learn more.
The timing of fundraising is a key concern for founders. Experts are divided: Should the timing be a strategic factor in your fundraising efforts, or is it less important than other aspects of the process?
Capvisory Insights
The perfect moment for fundraising:
What are the best months to raise capital for your startup?
At Capvisory, we support ambitious startups with their Seed and Series A funding rounds. In this article, we share insights from our hands-on experience.
The question of the optimal timing for fundraising is a common concern for founders. Among experts, there are two competing views on whether timing should be an integral part of a fundraising strategy.
Some experts emphasize seasonal fluctuations in the venture capital market, while others argue that the time of year has no impact on the likelihood of closing a deal.
Perspective One: Seasonality Impacts Fundraising
Anyone who has been in venture capital for a while is familiar with this saying or something similar: “Don’t raise capital in August – the VCs are on vacation.”
Analyses based on PitchBook data confirm that a significant number of financings are closed or made public in certain months—particularly January, March, June, and October.
In contrast, there is noticeably less activity in July, August, and December, with holidays and vacation times cited as the main reasons. From our own experience, we can indeed confirm that investors and key decision-makers from strategists are harder to reach during these months.
Venture capital investor Mark Suster (Upfront Ventures) shares this view, stating that VC financings are subject to seasonality:
It is very difficult to raise venture capital between November 15 — January 7th. It is also very hard to raise VC from July 15 — September 7th.
For those who subscribe to this view, it’s important to remember that every “closing” is typically preceded by weeks or even months of investor outreach and negotiation. Proponents of this theory argue that it’s less about focusing on the months when deals are closed and more about considering the months leading up to these closings. A sound strategy would be to start engaging investors 3-9 months prior (depending on market conditions, industry, and startup traction) to align with the months when closing activity is highest.
But in which months does most investor outreach take place? A 2019 analysis by DocSend, based on data from over 20,000 founders and VCs, provides valuable insights into the timing of investor outreach. According to the analysis, most founders send out their pitch decks in October, followed by November and May. VCs, on the other hand, review pitch decks most intensively in March, October, and November.
Decks Sent & Deck Visits (Studie 2019)
The dataset is based on over two million views of pitch decks, shared via more than 500,000 unique links. Most decks are sent out in October (index 100), while investors are most active in November (also index 100).
Another intriguing finding from the study: Pitch decks sent out in January and February receive an average of five to seven views, while this number drops to about three to five views per deck for the rest of the year.
Second Perspective: No “Perfect” Season for Fundraising
The other perspective in the market is that, despite seasonal trends, fundraising is possible year-round, and the calendar month should not be part of the fundraising strategy. For example, historical deal distribution data from Carta shows that financing activity remains relatively steady throughout the year. While June and August, often considered vacation months, show a slight dip in deal activity, they are still solid months for closings. The data from the previously mentioned DocSend study supports this view.
According to this perspective, the readiness and condition of the startup are far more important than the calendar month. Once a company can demonstrate solid growth and has built the necessary traction, the fundraising process should not be artificially delayed. The key is to approach investors when the startup has a compelling growth story and clear future prospects—and this can certainly happen in July or August as well.
Venture capital investor Fred Wilson (Union Square Ventures) supports this view, emphasizing that it’s the state of the company, not the timing, that matters.
If your company will be running out of money at or before year end, you should be raising money now. Do not let anyone convince you to wait until “everyone is back from the beach in September.” That is too late. Do it now.
The fact is: funding rounds are closed even in the height of summer. For example, in August 2024, Berlin-based startup Caresyntax announced its $180 million Series C funding round.
Our advice:
Start fundraising as soon as your startup is ready, and don’t hesitate to approach investors when you have a strong growth story to tell or when you anticipate a need for capital. From the start of fundraising to the actual disbursement of funds, it’s prudent to plan for a timeline of 6 to 9 months. A well-timed approach can help, but it’s not the sole determinant of success.
If you’re not under time pressure and can strategically choose when to start fundraising, here are the three key tips:
Avoid the Q4 Fundraising Trap: The end of the year often follows a recurring pattern in fundraising. Activity spikes initially but then sharply declines in December. If you don’t close your round by the end of November, you risk losing momentum over the holiday period.
Leverage VC Activity Peaks to Your Advantage: October, November, and March are the busiest months for VCs reviewing pitch decks. Try to stay ahead of the wave of applicants instead of trailing behind.
Go Against the Grain in January & February: There’s less competition for VC attention during these months, giving you the opportunity to stand out and potentially receive increased focus from investors.
Conclusion: Our Experience at Capvisory
From our many years of experience at Capvisory, we know that there is no “perfect” time for fundraising based solely on the calendar. Success depends far more on how well-prepared the startup is and the progress it has made in its development. That said, seasonal and regional factors such as holidays or vacation periods should not be ignored, as they can potentially cause delays or lead to a loss of momentum.
At Capvisory, we support ambitious startups in their Seed and Series A funding rounds. Capvisory offers expertise as well as additional resources to assist in fundraising processes. Schedule a meeting with us today.
