Sifted’s latest analysis of 2,800 European funding rounds reveals how founders justify capital and allocate it. Across equity and debt, 94% of startups cite product development as the primary use, underscoring the sector’s relentless focus on technology. The study tracks every round, from pre‑seed to Series A, highlighting trends that investors can use as benchmarks.

Geographical expansion surfaces early: 44% of seed‑stage firms plan international moves, climbing to 64% at Series A and holding steady through Series D. Median Series A deals hit €13.7 million, a figure that signals when European companies feel ready to cross borders. US markets attract 31% of seed, rising to 43% by Series C.

Hiring patterns shift as firms mature. Pre‑seed sees hiring at 44%, dropping to 39% at seed and 38% at Series A; from Series B onward it falls out of the top five, replaced by infrastructure and operations. AI‑native and B2B SaaS remain the only verticals where early hiring stays a top priority.

Deeptech and climate tech prioritize operations and partnerships over rapid geographic spread, with only 38% expanding early and peaking at 54% later. Healthtech blends this approach, adding regulatory spend as it scales. These insights equip investors to assess capital efficiency and forecast which sectors will redirect funds toward product, growth or compliance.