Funding
What is Pre-Seed Funding?
Pre-seed is the earliest stage of startup funding. It typically comes from founders, friends, family, or early-stage angels to build a prototype or MVP.
Definition
Pre-seed funding is the initial capital raised to get a startup from idea to early product. It typically ranges from 50k to 500k and comes from founders personal funds, friends and family, angel investors, or pre-seed focused VCs. Pre-seed funds are used to build an MVP, validate the idea, and sometimes acquire initial users. The goal is to reach milestones that enable a seed round.
Key Points
- First external capital raise
- Typically 50k to 500k
- Sources: F&F, angels, pre-seed VCs
- Used for MVP development and validation
- Goal: reach seed round milestones
Examples
- 1.150k from angels to build MVP
- 2.250k pre-seed from Y Combinator
- 3.100k from friends and family
Frequently Asked Questions
Related Terms
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