An In-Depth Guide to Kicking Off Your Pre-Seed Raise
Raising a pre-seed round is often the first major fundraising milestone for a startup. It’s a critical stage where you’re turning an idea into a viable business, convincing investors to back you before you have substantial traction. While daunting, many founders have successfully navigated this stage and shared key insights on how to approach it effectively.
What is Pre-Seed Funding?
Pre-seed funding is the earliest stage of venture financing, typically used to validate an idea, build an MVP, and make early hires. At this stage, startups usually raise anywhere from $100,000 to $2 million, often from angel investors, early-stage VCs, or friends and family.
The focus is less on financial metrics and more on the founding team, market opportunity, and vision. As Michael Seibel, Partner at Y Combinator, puts it:
“At pre-seed, investors are betting on the founders and their ability to execute, not on traction.”
While it certainly doesn’t hurt to have traction, in this guide we’ll outline 7 crucial steps along your initial fundraising journey.
Step 1: Clarify Your Fundraising Goals
Before reaching out to investors, define your fundraising objectives to ensure you're raising the right amount and from the right partners. Having a clear plan not only strengthens your pitch but also helps you avoid unnecessary dilution or over-commitment.
How much capital do you need, and what milestones will it help you achieve?
Determine the specific amount required to reach your next inflection point, whether it's product development, market expansion, or customer acquisition. Investors want to see that their capital will drive measurable progress rather than just extending runway.
What type of investors align with your vision?
Different investors bring different value beyond capital—some offer deep industry expertise, while others provide strategic partnerships or operational support. Identifying the right investor fit ensures alignment in expectations, long-term vision, and potential future funding rounds.
How will you use the funds to de-risk your business for the next stage?
Clearly outlining how the investment will reduce key risks—such as validating product-market fit, proving unit economics, or scaling operations—demonstrates a thoughtful approach to growth. Investors prefer funding companies that strategically mitigate risks rather than ones that rely on future capital to solve fundamental challenges.
Caitlin Gleason, founder of a healthtech startup, recalls:
"We originally thought we needed $1 million but realized we could hit key milestones with $500K. That clarity made our pitch stronger."
By reassessing their needs, Caitlin's team was able to refine their ask, making them more attractive to investors who saw a focused, capital-efficient strategy.
Step 2: Build a Compelling Narrative
Pre-seed investors back strong founders with a clear vision. Your story should highlight:
The Problem: Why does this problem matter, and why is now the right time to solve it?
The Solution: How does your product address the problem in a unique way?
Market Potential: Is there a large, growing market for your solution?
Why You? What makes your team uniquely positioned to execute?
Elliot Robinson, Partner at Bessemer Venture Partners, advises:
“Pre-seed investing is about conviction. If your story isn’t compelling, investors won’t be either.”
Step 3: Identify and Target the Right Investors
Not all investors write pre-seed checks, and even among those who do, their focus varies by industry, geography, and business model. The key to a successful fundraising process is identifying the right investors—those who align with your sector, stage, and long-term vision. A well-researched approach saves time and increases your chances of securing funding.
Building Your Investor List: Tools and Best Practices
1. Finding Angel Investors
Angel investors are high-net-worth individuals who invest in early-stage startups, often providing the first external capital before venture firms step in. Here’s how to find them:
LinkedIn – Use advanced search filters to identify angel investors with relevant backgrounds. Keywords like "angel investor" + your industry can surface potential backers.
AngelList (angel.co) – A platform where startups can connect with angel investors interested in specific industries and business models.
Alumni and Founder Networks – Many successful founders become angel investors themselves. Tapping into alumni groups from universities, past employers, or industry organizations can uncover angel investors who are open to warm introductions.
Angel Syndicates and Groups – Platforms like AngelList Syndicates, SeedInvest, and MicroVentures allow investors to pool resources to fund startups.
💡 Best Practice: When reaching out to angel investors, focus on those who have invested in similar business models before. Highlight the problem you’re solving and why now is the right time to invest.
2. Targeting Pre-Seed Venture Firms
Unlike angel investors, pre-seed venture capital (VC) firms deploy institutional capital and often provide more structured support beyond funding.
VC Firm Websites & Portfolio Pages – Firms like First Round Capital, Precursor Ventures, Hustle Fund, and Contrary Capital actively invest in pre-seed startups. Review their portfolio to gauge fit.
Crunchbase & PitchBook – These databases provide insights into which firms are actively investing at the pre-seed stage and in which sectors.
Twitter/X and Medium – Many investors share their investment thesis and portfolio interests on social media and personal blogs, making it easier to identify relevant ones.
Founder Communities – Platforms like On Deck, Indie Hackers, and YC Startup School provide peer recommendations for investor connections.
💡 Best Practice: Create a structured outreach plan, prioritizing firms that have invested in companies similar to yours (same sector, business model, or stage). Personalizing your approach increases your chances of getting a response.
3. Leveraging Startup Accelerators
Accelerators provide early-stage funding, mentorship, and networking opportunities to help startups refine their business model and secure follow-on capital.
Top Accelerators: Programs like Y Combinator, Techstars, 500 Startups, and Antler are well-known for their track record in helping startups scale.
Industry-Specific Accelerators: Some accelerators specialize in fintech, healthtech, or SaaS, offering targeted resources and investor connections. Examples include Health Wildcatters (healthtech) and Plug and Play (various industries).
Local & University-Based Accelerators: Many cities have startup accelerators run by economic development groups or universities that provide funding and mentorship.
💡 Best Practice: Accelerators are competitive. Strong applications clearly articulate the problem, traction, and why your team is best suited to solve it.
Warm Intros vs. Cold Outreach: What Works Best?
Rachel Green, who successfully raised a pre-seed round for her fintech startup, shares:
"Cold outreach rarely works. Warm intros through mutual connections had a much higher success rate for us."
Investors receive hundreds of cold emails, so standing out requires strategic networking:
Leverage your existing network: Ask advisors, past colleagues, or founders you know for introductions.
Attend industry events & pitch competitions: Meeting investors in person or engaging in relevant online discussions increases visibility.
Engage on social media: Commenting on an investor’s blog post or LinkedIn article before reaching out can establish a connection.
Step 4: Perfect Your Pitch Deck
Your pitch deck should be concise, clear, and compelling. Key slides include:
Problem Statement – The pain point your startup addresses
Solution – How your product solves the problem
Market Opportunity – Total addressable market (TAM) and growth potential
Business Model – How you plan to make money
Traction (if any) – Early users, partnerships, or revenue
Go-to-Market Strategy – How you’ll acquire customers
The Team – Background and expertise
Financials & Fundraising Plan – How much you need and how you’ll use it
Platforms like Canva and Beautiful.ai offer sleek, customizable templates that help non-designers create investor-ready presentations with ease. Pitch.com is another great option, providing collaborative, dynamic slides tailored for fundraising.
For data-heavy decks, Tome and Prezi offer more interactive and storytelling-focused formats that keep investors engaged. If you're looking for inspiration, sites like BaseTemplates and Slidebean provide pre-made pitch deck templates modeled after successful startups.
Additionally, DocSend allows you to track investor engagement with your deck, helping you refine your pitch based on real-time analytics. Using these tools ensures your pitch deck is both visually compelling and strategically structured to capture investor interest.
Step 5: Build Momentum with Early Wins
Investors want to see progress. Before pitching, build some traction:
Get beta users or early signups
Develop an MVP, even if scrappy
Show engagement metrics (e.g., website traffic, waitlist signups)
Secure an advisory board or industry partnerships
Peter Livingston, an angel investor, explains:
“I don’t expect revenue at pre-seed, but I do expect proof that users care about your solution.”
Step 6: Leverage Warm Introductions
Warm intros dramatically increase your chances of securing meetings. Ways to get intros:
Ask founders who’ve raised capital for referrals
Connect with investors on Twitter, LinkedIn, or industry events
Engage with investors’ content (blog posts, podcasts, etc.)
Nina Patel, founder of an AI startup, shares:
“I messaged an investor on Twitter about a topic they’d posted. That led to a call, which turned into a term sheet.”
Step 7: Handling Negotiations & Closing the Round
Pre-seed valuations vary widely, but it’s crucial to strike a balance between fair pricing and maintaining ownership. Common pre-seed instruments include:
SAFE Notes (Simple Agreement for Future Equity) – Popularized by Y Combinator, SAFEs delay valuation discussions until the next round.
Convertible Notes – Similar to SAFEs but with interest rates and maturity dates.
Equity Rounds – Less common but sometimes used if valuation is clear.
Be prepared for due diligence. Even at pre-seed, investors may ask for:
A cap table
Customer testimonials or early traction data
Founder agreements and IP documentation
Hopefully this guide shared some insights into the expectations of raising your first pre-seed round. While it will be one of the most challenging endeavors of your early journey, approaching it with a structured plan can significantly improve your odds. On average, only about 25-30% of startups successfully raise a pre-seed round, highlighting the importance of targeting the right investors and refining your pitch. Many fund managers emphasize that overcoming objections is a key part of the process—common pushbacks include lack of traction, unclear differentiation, or market size concerns.
To navigate these challenges, experienced investors recommend preemptively addressing objections in your pitch and using social proof to build credibility. Tactics like securing a strong lead investor, demonstrating customer interest (LOIs, waitlists, or early revenue), and leveraging warm introductions can significantly improve your chances.
As James Currier, General Partner at NFX, reminds:
"Fundraising isn’t about convincing people. It’s about finding those who already believe in your vision."
By focusing on clarity, storytelling, and building momentum—while proactively handling investor concerns—you’ll set yourself up for a successful pre-seed round and a strong foundation for future growth. To learn more you can view one of our past Gildre Executive Workshop’s hosted by Propellant Ventures Managing Partner, Jason Jacobsohn: How to Pitch to VC’s from a Managing Partner.
