Observed Signal · Oct 16, 2026 · Interview / Commentary · Source: Gründerszene (DACH Startups & Scaleups) · Impact: 2/5 · Sentiment: Neutral
Project A's Heinemann: European VCs are suppliers to top US investors
In the 'Royal GS' podcast, Project A founding partner Florian Heinemann discussed European early-stage VC strategy. Project A, a Berlin-based early-stage investor, focuses on pre-seed and seed rounds, sometimes Series A, with a €325 million fund. Heinemann emphasized that European early-stage VCs act as 'suppliers' for top US investors, preparing startups for later US-led funding rounds. He advised founders to limit dilution to 20% per round and to maintain market-standard valuations. He cited Trade Republic as a success, noting Project A's ~9% stake cashed out during a secondary round at a €12 billion valuation. He criticized overvalued rounds by late-stage startups like ElevenLabs and Lovable, questioning the defensibility of such high valuations and noting that such rounds often facilitate secondaries for early investors.
Insights from a prominent European VC leader on funding dynamics and valuation strategies, relevant to the startup ecosystem and tech investments.
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Key Takeaways & Evidence Grounding
- Project A manages a €325 million fund for early-stage investments.
- Florian Heinemann advises founders to limit dilution to max 20% per round.
- Project A cashed out part of its ~9% stake in Trade Republic during a secondary round at a €12 billion valuation.
- Heinemann believes European early-stage VCs are "suppliers" for top US investors.
- Heinemann criticized late-stage mega-rounds (e.g., ElevenLabs, Lovable) as often unnecessary and driven by secondaries.
Connected Companies & Entities
4 Entities mapped“Florian Heinemann, founding partner of early-stage investor Project A, discusses early-stage strategy in the Royal GS podcast.”
“Project A held about a nine percent stake as an early-stage investor in Trade Republic, which reached a valuation of over twelve billion eur...”
“ElevenLabs raised 500 million euros earlier this year at an eleven billion dollar valuation and is now valued at 22 billion dollars.”
“Lovable secured 400 million euros in funding this summer at a valuation of 13.3 billion euros.”
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