In recent years, the global startup landscape has expanded rapidly, driven by innovation, digitalisation, and entrepreneurial ambition. From modest beginnings to billion-euro “unicorns” like Klarna, UiPath, and Bolt, startups around the world are transforming traditional industries and capturing significant market share.
Behind many of these high-growth companies is a crucial source of support: venture capital. VC firms offer strategic guidance, access to international networks, and the momentum to scale quickly. But what do these partnerships actually entail, and how do they shape the early trajectory of startups?
Defining Venture Capital: Beyond the Investment
VC is a type of private equity financing provided to startups and early-stage companies with strong growth potential. Instead of giving loans, venture capitalists (VCs) invest money in exchange for equity, or partial ownership, in the company.
Unlike angel investors, who are typically wealthy individuals offering early seed funding, venture capital comes from institutional sources or dedicated funds that invest larger amounts and usually take more substantial equity stakes. It also differs from traditional private equity, which targets established companies seeking expansion or restructuring, whereas VC focuses on younger firms still developing products and building market presence. In contrast to bank loans, which require fixed repayments and collateral, VC investments involve shared risk and reward through ownership.
Much of global venture capital comes from private firms seeking rapid returns, however, alternative models are emerging. A notable example is the EIC Deep Tech VC Fund, launched by the European Commission to support breakthrough technologies in areas like AI, clean energy, and biotechnology. As a form of patient capital, it backs high-risk, high-impact startups with longer time horizons, aiming to foster sustainable innovation across Europe. By combining public investment with long-term strategic goals, the EIC Fund offers a different vision of venture capital where resilience and societal value is prioritised alongside financial growth (European Commission, 2024).
The process of venture capital funding typically unfolds in several stages. Pre-seed and seed rounds support the validation of business ideas and the development of early products or services. These are followed by Series A, B, and later rounds, which involve larger investments tied to growth milestones. Successive rounds help startups expand operations, enter new markets, and build industry position. The journey often culminates in an exit, either through acquisition or an Initial Public Offering (IPO), allowing founders and investors to realise returns.
Global Hubs Shaping the VC Landscape
While Silicon Valley remains the most prominent VC hub, securing over 69 billion dollars in early 2025 alone (Gilion, 2025), much of this investment is driven by artificial intelligence. Meanwhile, other regions are gaining prominence, such as Berlin, who has become a leading European centre for venture capital, attracting interest through its strength in industrial technology, green energy, and a growing pool of technical talent (Visible.vc, 2025). Moreover, Singapore, and Stockholm also contribute to the increasingly global nature of venture capital, each offering unique strengths within their regional ecosystems.
Although it may seem that venture capital is simply a source of funding, its impact goes much deeper. In many cases, it plays a central role in shaping how startups grow. Alongside capital, VC firms bring strategic advice, industry connections, and the drive to scale quickly. Their involvement can influence everything from hiring and product strategy to market expansion and long-term planning. As a result, venture capital often helps define not only whether a startup succeeds, but how it gets there.
Strategic Support: VC’s Role Beyond Capital
The support venture capital offers goes well beyond financing. One of its greatest benefits is mentorship and strategic advice, where experienced investors help founders navigate crucial decisions around product development, market positioning, and long-term growth. For example, Klarna’s transformation from a Swedish fintech startup into one of Europe’s leading payment providers was shaped by investments from firms like Sequoia Capital, Atomico, Dragoneer, and SoftBank’s Vision Fund 2. In 2021, Klarna raised $639 million in a funding round led by SoftBank at a $45.6 billion valuation to fuel international expansion. These funds, paired with strategic guidance, enabled Klarna to scale aggressively and position itself for major exit opportunities such as IPO or acquisition (Klarna, 2024; Sifted, 2024; Global Venturing, 2021).
In addition to mentorship, venture capitalists provide access to extensive networks, connecting startups with industry experts, potential partners, and the right talent needed to accelerate team building and scaling operations. These connections not only improve hiring but also facilitate securing follow-on funding by building investor confidence and opening doors to new financiers, as seen with companies like Stripe, which received successive funding rounds supported by VC networks (Stripe, 2023). Furthermore, many VC firms in Europe offer support that extends beyond capital, combining structured mentorship and founder services to accelerate startup growth.
For instance, Norrsken VC, founded by Klarna’s co-founder, blends investment with impact-focused acceleration programs to support innovative startups across the Nordics and Europe (Norrsken VC, 2024). Creandum, a leading pan-European firm with offices in Stockholm, Berlin, and London, is known for backing companies like Spotify and Klarna by providing strategic guidance alongside funding (Business Insider, 2021). Germany’s High-Tech Gründerfonds specialises in early-stage deep-tech investments, offering both seed capital and hands-on operational support (NRW Global Business, 2025), while EQT Ventures, based in Sweden, delivers multi-stage funding paired with extensive founder resources to help technology companies scale effectively (EQT Group, 2025). Together, these forms of support create a strong ecosystem that significantly boosts a startup’s chances for lasting success.
Future Story: Driving Venture Capital Success Between Europe and the Gulf
Future Story is a joint venture between AcrossLimits, a Maltese company led by Angele Giuliano, and Grey Matter, an Emirati company represented by Kais Badran. Our mission is to connect European startups with investors from the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE) to fund innovations in sectors such as Deeptech, Healthtech, Foodtech, and Proptech. By tapping into the GCC’s growing reputation as a key investment hub, we help startups expand their reach, enter new markets, and make a global impact.
Future Story enhances the venture capital process by connecting European startups with Gulf region investors who are actively seeking high-potential opportunities. By preparing startups to meet rigorous investor standards through tailored pitch coaching and comprehensive due diligence, Future Story increases their chances of securing venture capital funding. Its deep understanding of both European innovation ecosystems and GCC investment landscapes enables it to align startups’ strategies with investor expectations, facilitating smoother deal-making and stronger, long-term VC partnerships. This hands-on approach helps startups navigate the complexities of venture capital, accelerate international growth, and maximize their funding potential.
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References
Gilion. (2025). 200+ investors & venture capital firms in Silicon Valley for 2025. VC Mapping.
Global Venturing. (2021, October 28). Klarna claws in $639m. Retrieved July 16, 2025.
Investopedia. (2025, February 24). The history of Uber.
Norrsken VC. (2024). People: Niklas Adalberth.
NRW Global Business. (2025). High-Tech Gründerfonds and Coparion.
Sequoia Capital. (2020). How Sequoia helped Airbnb refine its business model. Sequoia Capital.
Sifted. (2024, January 18). What happened to Klarna’s valuation? Retrieved July 16, 2025.
Visible.vc. (2025). Berlin venture capital investors to know in 2025.
Wall Street Journal. (2018, October 16). The fall of Theranos: What went wrong.