What is a Pre-Seed Round? 🤔
A majority of Christian entrepreneurs come to us with a concept or an idea. Once we conduct our first Discovery Meeting (and subsequent follow-up discovery meetings), we are considerably more informed as to the chronological road map we’ll take on any client venture. At this point it is incumbent upon the entrepreneur and founders to raise their first pre-seed round for development.
A pre-seed round is for early stage product development of a minimum viable product (MVP) or a more mature/advanced platform. Funding of a startup at this level is to maximize its future fundraising opportunities through testing, having an effective core team and building beyond a prototype.
The Size of Your Pre-Seed Round Will Impact Early Stage Success 🎉
It is imperative that both investor and entrepreneur understand how critical the requisite amount of pre-seed investment serves as a catalyst to achieving the appropriate product/market fit upon soft-launch which both mitigates costly overruns and UI/UX corrections while acting as a catalyst to revenue generation, capturing market share and establishing your brand name out of the gate. This is achieved via a lean (MVP) design process that focuses on continuous customer value maximization while minimizing all activities and tasks that are not adding value-building characteristics.
Ultimately products fail to gain traction in the market as a direct result of products being designed and built without validating market desirability. Our lean design process focuses on early-stage research and validation cycles, which mitigates issues before we enter the development stage of your venture.
Seed rounds are typically regarded as the first type of fundraising round available to founders. But in an increasingly competitive marketplace, huge growth in the number of startups has allowed “traditional” seed investors to become far more discerning in how they choose their investments — raising the threshold required to attract “traditional” seed funding.
A pre-seed round has been typically raised through family/friends, business/church contacts and angel investors before 2016 but in 2019 and beyond it is more typical to raise from private equity individuals of high net worth, particularly in the current economy of strong GDP, job growth and investor confidence. In this bull run, there has been a major behavior shift. As it has continued, consumers have become more confident and as consumers have opened their purse strings, consumer-focused companies have benefited.
How Much Can I Expect to Raise in a Pre-Seed Round? 🤔
Pending your investor contacts, today’s pre-seed round is usually between $100K to $1.5M but more typically $250K to $750K.
If you’re ready to discuss your venture please schedule a 1Hr Discovery Meeting by clicking the green button in the bottom-right corner of your device screen.