No BS, Just Facts: Pre-seed vs. Seed – Where You At?

Pre-seed or seed funding? That is the question.

Hello Trailblazer,

In the startup journey, every stage matters - especially regarding funding. This week, we're diving into one of the most frequent questions I get: 'Should I go for pre-seed or seed funding? Let's uncover the nuances.

Defining the Stages: Pre-seed vs. Seed

Look, if you're hustling in the startup game, you've gotta get your terminology right. It's not just jargon—it's the difference between your next coffee chat and a missed opportunity.

Pre-seed? Think of this as your startup's baby steps. It's raw, it's unpolished. It’s your “I have a killer idea” stage. You’re still validating whether your idea has legs to stand on.

Seed? Now, you've grown a bit. You've got some traction—maybe a prototype, some early users, or even revenues. You're beyond the "does this work?" and into the "let's scale this baby" phase.

The Numbers Game:

Numbers, numbers, numbers. It's not just about the Benjamins—it's about what they mean.

Pre-seed: You're looking at anything from $10K to maybe $500K. This is friends, family, and maybe a few angel investors who believe in your vision before it's a sure thing.

Seed: Now, you're playing in the big leagues, kind of. From $500K to maybe a few million. This is where VCs might start peeking in, especially if they see potential. This cash? It's for scaling, marketing, and maybe even hiring a few team members.

The Investor Perspective:

Alright, let's talk about those folks with the checkbooks. What are they thinking?

Pre-seed: They wanna know if you're onto something. Can this idea fly? Is there a market? They're betting on you and your vision—so you better show them why you believe in it.

Seed: It's not just about the dream anymore. Now, they wanna see numbers. Traction, user growth, sales. They're not just betting on the jockey now—they're also looking at the horse.

🚀 And here's a freebie: Always, always be authentic. Don’t sugarcoat. Don’t exaggerate. Be you. Because that’s who they’re investing in.

Quick Tip of the Week:

Before deciding on pre-seed or seed, evaluate your startup's current needs. Do you need to validate an idea (pre-seed) or scale a proven concept (seed)?

Next week, we're diving into a series about crafting the perfect pitch deck. Got questions about that? Hit reply and let me know! If 'The Funding Sherpa' is guiding you well, share it with a fellow founder embarking on their funding journey!

Questions? Ask me on X (Twitter) - Bonigala