Research from DocSend indicates that founders contact an average of 71 investors to successfully close a pre-seed round. Surveys show that a quarter of founders dedicate over half of their work week to fundraising activities, yet only one in three conduct thorough research on potential backers.
In the second quarter of 2026, European startups raised €21.41 billion, which is two-thirds more than the previous year. However, 65 percent of this capital was concentrated in just 42 companies that each secured €89 million or more, while the total number of early-stage deals declined.
Founders are advised to verify investor track records, sector experience, and board history using public resources like Companies House in the UK or the European e-Justice Portal. Speaking directly with founders of companies previously backed by the investor is cited as the most effective method for due diligence.
While AI tools can now accelerate the process of assessing investor dealflow, they have limitations regarding accuracy. Founders should use these tools as a guide and verify all findings, especially when dealing with common names or unusual investor behavior.
