Starting a new business venture requires capital, and one of the ways to secure funding is through pre-seed investment. Pre-seed investment is a type of funding that is received by a startup in its early stages, even before it has a product or service to offer. This type of investment is typically made by angel investors or venture capital firms.
Initial Funding
Pre-seed investment is important for startups as it provides the initial funding needed to get the business off the ground. This funding can be used to develop a business plan, create a minimum viable product (MVP), conduct market research, and build a team. Pre-seed investment is also a crucial step for startups as it demonstrates the viability of the business to future investors.
Range from $10K to $250K
The amount of pre-seed investment can vary depending on the needs of the startup. Typically, pre-seed investment ranges from $10,000 to $250,000. The investment is made in exchange for equity in the company, which means that the investor becomes a shareholder in the business.
Need a Pitch Deck
To secure pre-seed investment, startups will need to create a pitch deck that outlines the business idea, the problem it solves, the market opportunity, and the team behind the business. The pitch deck should also include financial projections and a clear plan for how the pre-seed investment will be used.
Need a Term Sheet
When negotiating a pre-seed investment, startups will need to create a term sheet. A term sheet is a document that outlines the terms of the investment, including the amount of equity that the investor will receive, the valuation of the company, and any other conditions or restrictions of the investment.
High Risk
It is important to note that pre-seed investment is a high-risk investment for investors, as startups at this stage are still unproven and may not be able to deliver on their promises. However, for startups, pre-seed investment can be a crucial source of funding that helps them get started on their journey to success.
Hire a Startup Advisor
Pre-seed investment is an important step for startups that are in their early stages. It provides the initial funding needed to get the business off the ground and demonstrates the viability of the business to future investors. To secure pre-seed investment, startups will need to create a pitch deck and negotiate a term sheet with potential investors.
Upthriving is a fully integrated startup growth service for entrepreneurs that have built a product with market fit. More than a startup advisory service, we execute projects that maximize revenue for your business while you focus on building the product.