5 tips for founders starting their pre-seed raise

Congratulations on embarking on your pre-seed fundraising journey as a founder! Pre-seed fundraising is an important step for any startup, as it provides the initial funding to get your business off the ground. However, it can be a challenging process if you don’t have the right knowledge and approach. In this blog post, we will discuss the five things founders need to know about the pre-seed fundraising process.

Have a Deck

One of the most important things you need to do when preparing for pre-seed fundraising is to create a pitch deck. Your pitch deck should be a comprehensive overview of your business, including your vision, team, product or service, market, competition, financials, and growth strategy. A pitch deck is an essential tool for communicating your business to potential investors and should be clear, concise, and compelling.

Know Your Vision

Your vision is the driving force behind your startup, and investors want to see that you have a clear idea of where you want to take your business. Your vision should be articulated in a way that is both inspiring and realistic. You should be able to explain why your business is important and how it will make a difference in the market. Your vision should also be supported by a strong business plan that outlines your strategy for achieving your goals.

Understand the Market/Competition

Investors want to see that you have a deep understanding of the market and competition. This means that you need to have a thorough understanding of your target market, including its size, growth potential, and trends. You should also be able to identify your competitors and explain how your product or service is different and better. Understanding your market and competition will help you position your business in a way that is attractive to investors.

Don’t Make Anything Up

Investors are experienced and knowledgeable, and they can easily spot inconsistencies and falsehoods in your pitch. This means that you should avoid making up numbers or exaggerating your achievements. Be honest about your progress to date and realistic about your projections. Investors want to invest in a startup that has a strong foundation and realistic expectations for growth.

Make the Investors Believe They Can Make a Big Exit

Investors want to invest in a business that has the potential for a big exit. This means that you need to convince investors that your business has a clear path to profitability and that there is a market for your product or service. You should be able to explain how you will generate revenue and how you plan to scale your business. You should also be able to demonstrate that your business has a unique competitive advantage that will enable it to stand out in the market.

In conclusion, pre-seed fundraising is an essential step for any startup, and it can be a challenging process. However, by following the five tips outlined in this blog post, you can increase your chances of success. Remember to have a pitch deck, know your vision, understand the market/competition, avoid making anything up, and make the investors believe they can make a big exit. With these tips in mind, you will be well on your way to securing the funding you need to turn your startup into a successful business.