A recent report sheds light on the traits that contribute to successful fundraising for startup founders across Europe.
- The study involved an analysis of over 17,000 European tech startup founding teams.
- Academic qualifications emerged as a significant factor, with PhD and MBA holders raising substantially more funds than those with bachelor’s degrees.
- Prior entrepreneurial experience and a consulting background were linked with higher funding success.
- International diversity within founding teams correlated with increased investment above the baseline.
A comprehensive new report has been unveiled, highlighting the traits that aid founding teams in securing investment. The study analysed data from 17,836 tech startups established in Europe since 2014, identifying common characteristics among the most successful founders.
The analysis revealed that educational background plays a significant role. Founders with advanced degrees, particularly PhDs, have demonstrated higher success rates in securing funds, receiving an average of $34.1 million in contrast to the $13.9 million raised by those without formal qualifications. MBA holders also perform well, attracting an average of $30 million.
University affiliation impacts fundraising capabilities as well. Alumni from top UK institutions such as the University of Cambridge averaged $11.2 billion, while INSEAD alumni raised $7.6 billion, followed by graduates of the University of Oxford, London School of Economics, and the Technical University of Münich.
The report further identifies prior startup experience as another vital trait. Teams led by serial founders raised approximately 45% more than those initiated by first-time entrepreneurs. Consulting experience also proves beneficial, with former employees of firms like McKinsey and Boston Consulting leading successful funding rounds.
An international background within the founding team is another significant advantage. Teams with members from diverse countries raised 33% more than the baseline. Notably, the UK, with 39% international founding teams, surpasses other regions like Germany which stands at 28%. This international mix is linked with higher funding figures.
The ideal team size for attracting investment is analysed in the report, suggesting that four co-founders is optimal. Teams of four raised an average of $70.5 million, outperforming groups with fewer founders.
The findings consistently point to specific educational, experiential, and structural traits that enhance a startup team’s ability to attract substantial investment in Europe.
