Every startup needs capital to grow, but raising money is rarely a single event. It is a journey that unfolds in stages, each with its own logic, expectations, and type of investor. Understanding the startup funding stages is one of the most important things a founder can do before approaching any investor.
This guide breaks down the funding rounds pre-seed to Series A, explaining what it means, what investors look for at that stage, and how EIT Urban Mobility participates as a co-investor across all three. If you are building an urban mobility startup in Europe, you will also find out exactly how our financial support programme works and how to apply.
What are the startup funding stages?
The startup investment stages are not arbitrary labels. They reflect a company’s level of maturity, the evidence it can provide to investors, and the amount of capital it typically needs. Moving from one stage to the next usually means reducing a key risk — whether that is product risk, market risk, or scaling risk.
Here is an overview of the main funding rounds for startups:
| Stage | Typical raise | Company profile |
| Pre-Seed | €50K – €500K | Idea / prototype / founding team |
| Seed | €500K – €3M | MVP validated, early traction |
| Series A | €3M – €15M | Proven model, scaling |
| Series B+ | €15M+ | Growth acceleration |
This guide focuses on the first three stages, because they represent the period during which most early-stage startups need — and can access — institutional support.
Pre-seed funding for startups: the very beginning
What is pre-seed funding?
Pre-seed is the earliest formal startup funding stage. At this point, a company may have little more than a founding team, an idea, and perhaps a first prototype or proof of concept. The capital raised at pre-seed is used to validate assumptions: Is there a real problem? Can this team build a solution? Is there a market willing to pay for it?
Pre-seed investors are betting on people and potential more than on proven results. They are willing to accept high uncertainty in exchange for high upside. Typical sources of pre-seed funding for startups include:
- Founders’ own savings and friends & family
- Angel investors
- Pre-seed venture capital funds
- Corporate programmes and innovation funds
The amounts are relatively small — usually between €50,000 and €500,000 — because the goal is not to scale but to reach the next milestone: a working prototype, a pilot with a real customer, or enough signal to justify a seed round.
What pre-seed investors look for
At pre-seed, investors cannot rely on financial metrics. What they analyse instead is:
- Team strength: Does this founding team have the domain expertise, technical skills, and resilience to execute?
- Problem clarity: Is the problem significant and clearly understood?
- Early differentiation: Is there a unique angle — a technology, a partnership, or an insight — that others do not have?
- Addressable market: Is the mobility or urban challenge they are solving large enough to justify venture investment?
How EIT Urban Mobility invests at pre-seed
EIT Urban Mobility is one of the few institutional investors in Europe that enters mobility startups at the pre-seed stage. Through the Financial Support to Startups Open Call, EIT Urban Mobility can invest up to €2.5 million in a single company, with a target equity stake of 5–10%.
At pre-seed, EIT Urban Mobility typically acts alongside a lead investor on a pari-passu basis — meaning on the same terms as the other investors in the round. In Regional Innovation Scheme (RIS) ecosystems — covering countries like Croatia, Hungary, Malta, and Poland — EIT Urban Mobility can also act as the first non-local investor, opening the door to international capital.
Beyond the cash component, EIT Urban Mobility’s investment at pre-seed includes in-kind support (both elements are capitalised through a capital increase or SAFE instrument), plus:
- Expert mentoring and coaching from dedicated Investment and Portfolio Managers.
- Technology roadmapping and product–market fit validation.
- Business model refinement.
- Introductions to the pan-European mobility ecosystem: cities, corporates, and follow-on investors.
Eligibility at pre-seed: Companies must have at least a prototype, pilot, or MVP, be incorporated in an EU Member State or Horizon Europe Associated Country, and be actively engaged in a pre-seed fundraising round at the time of application.
Seed funding for startups: proving the model
What is seed funding?
The seed stage is where startups move from “this might work” to “this is working.” The company has built a Minimum Viable Product, acquired its first users or customers, and can demonstrate that the core value proposition is real. Seed funding for startups is used to grow the team, iterate on the product, and reach the kind of traction that will attract a Series A investor.
Seed rounds typically range from €500,000 to €3 million in Europe, though the numbers vary by sector and geography. The number of investors grows at this stage — seed rounds often involve a lead investor and several co-investors, each bringing not just capital but expertise and network.
What seed investors look for
At seed, the bar shifts from potential to evidence. Investors examine:
- Product-market fit signals: Are users retaining? Is the solution solving the problem in a measurable way?
- Unit economics: Even early, do the numbers hint at a viable business model?
- Market momentum: Is the sector growing? Are there regulatory tailwinds or city mandates that accelerate adoption?
- Scalability: Can the solution be deployed in more cities, more corridors, or more use cases without rebuilding from scratch?
For urban mobility startups specifically, having a working pilot with a city, a transit operator, or a logistics company is a powerful seed-stage proof point.
How EIT Urban Mobility invests at seed
Seed is EIT Urban Mobility’s core investment territory. The Financial Support to Startups Open Call accepts applications from startups that are actively raising a seed round, and EIT Urban Mobility co-invests alongside other accredited investors on the same terms.
The portfolio spans five strategic sectors:
- Urban logistics
- Mobility data management and artificial intelligence
- Public and shared transportation
- Electrification of transport and alternative fuels
- Health and mobility
EIT Urban Mobility runs four investment cut-offs per year, which means founders do not have to wait for an annual cycle — there are regular windows to apply. With 100+ startups already in the portfolio and €290 million raised by portfolio companies, EIT Urban Mobility’s network and track record provide a meaningful signal to follow-on investors.
Series A funding: scaling what works
What is Series A funding?
Series A is the first large institutional funding round. At this stage, the startup has demonstrated consistent traction — repeatable revenue, a growing user base, or a signed pipeline — and the question is no longer whether the model works but how fast it can scale.
Series A rounds in Europe typically range from €3 million to €15 million. Investors at this stage are looking for startups that can use the capital to grow aggressively: expand into new markets, build out the team, and invest in the infrastructure needed to serve a much larger customer base.
What Series A investors look for
- Revenue growth: Month-over-month growth rates, annual recurring revenue (ARR), or contracted pipeline.
- Operational efficiency: The ability to scale without costs growing proportionally.
- Competitive moat: Patents, network effects, exclusive partnerships, or data advantages.
- Clear path to profitability: Not necessarily profitable today, but a credible model for when it will be.
- Experienced team: Often, startups add senior hires — a CFO, a VP of Sales, a CTO — before or during a Series A to signal execution capacity.
How EIT Urban Mobility invests at Series A
EIT Urban Mobility’s investment mandate extends to Series A, which makes it unusual among public innovation funds — most stop at seed. This continuity matters for founders: if EIT Urban Mobility invested at pre-seed or seed, it can participate in follow-on rounds, providing continuity of support and a credible institutional reference for the incoming lead investor.
EIT Urban Mobility also opens access to its Mobility Innovators platform — a curated community of cities, corporates, and investors — enabling portfolio companies to secure pilot agreements, commercial contracts, and introductions that accelerate growth.
The pre-money valuation limit for the programme is €50 million, and founders and executive team members must jointly hold more than 40% of the company’s shares before the fundraising round.
What makes EIT Urban Mobility different from traditional VCs?
Understanding the startup funding stages is one thing — choosing the right investor is another. EIT Urban Mobility occupies a distinct position in the European mobility investment landscape:
- Sector focus. EIT Urban Mobility only invests in urban mobility. That means every connection, every mentor, and every market introduction is relevant to what you are building — unlike a generalist fund where mobility is one sector among many.
- Co-investment model. EIT Urban Mobility does not compete with VCs; it co-invests alongside them. This means joining EIT Urban Mobility does not close doors — it opens them. EITUrban Mobility’s participation signals institutional validation and can catalyse lead investor interest.
- Beyond capital. EIT Urban Mobility’s investment is not purely financial. The value-add support — mentoring, ecosystem access, city introductions, follow-on funding opportunities — is designed to accelerate commercialisation, not just extend runway.
- Gender balance commitment. EIT Urban Mobility actively targets gender-balanced teams. 27% of ventures in the portfolio are woman-founded, and the programme encourages diverse founding teams through its RIS and acceleration pathways.
- European reach. With activities across all EU Member States and Horizon Europe Associated Countries, EIT Urban Mobility provides a pan-European platform for startups that want to grow beyond their home market.
How to apply to EIT Urban Mobility’s Financial Support Open Call
EIT Urban Mobility runs its Financial Support to Startups Open Call four times per year. To be eligible, your company must:
- Be incorporated in an EU Member State or a Horizon Europe Associated Country.
- Be actively engaged in a pre-seed, seed, or Series A fundraising round.
- Have at least a prototype, pilot, or Minimum Viable Product.
- Have a pre-money valuation below €50 million.
- Have founders and executive team members jointly holding more than 40% of shares before the round.
- Not already be part of the EIT Urban Mobility investment portfolio.
- Operate in the urban mobility sector.
Selected companies receive up to €2.5 million in financial support, co-invested on a pari-passu basis with other accredited investors, plus the full suite of EIT Urban Mobility’s portfolio support.
→ Learn more about EIT Urban Mobility’s startup investment programme
Frequently Asked Questions
What is the difference between pre-seed and seed funding?
Pre-seed funding is for companies at the idea or prototype stage, before they have validated product-market fit. Seed funding comes after there is evidence of traction — a working product, early customers, or measurable demand. The funding amounts are also larger at seed, reflecting the reduced risk.
Can I apply to EIT Urban Mobility if I have not raised any money before?
Yes. EIT Urban Mobility can act as the first non-local investor, particularly in RIS ecosystems, and can co-invest even if you are in the early stages of building your fundraising round. What matters is that you are actively in a fundraising process and meet the other eligibility criteria.
Does EIT Urban Mobility take equity?
Yes. EIT Urban Mobility takes a 5–10% equity stake as part of its co-investment. The investment includes both a cash component and in-kind support, both of which are capitalised through a capital increase or SAFE instrument.
What sectors does EIT Urban Mobility invest in?
EIT Urban Mobility focuses on urban mobility, specifically: urban logistics, mobility data and AI, public and shared transportation, electrification and alternative fuels, and health and mobility.
How often can I apply?
The Financial Support to Startups Open Call has four cut-offs per year, so you can apply for the cut-off when your fundraising process begins.
Ready to raise? Here is how EIT Urban Mobility can help
The startup funding stages — pre-seed, seed, and Series A — each represent a distinct phase in a company’s growth journey, with different risk profiles, investor expectations, and capital requirements. Understanding where you stand in this journey is essential before approaching any investor.
For urban mobility startups in Europe, EIT Urban Mobility offers something few investors can match: institutional co-investment at every stage from pre-seed to Series A, combined with a pan-European network, sector-specific expertise, and a track record of 100+ portfolio companies.
If you are currently raising and building a solution that makes cities more sustainable, smart, or inclusive, the Financial Support to Startups Open Call might be exactly the right next step.
→ Learn more about EIT Urban Mobility’s startup investment programme
