Pre-Seed Funding
The Earliest Stage of Venture Capital
Definition
Pre-seed funding is the earliest stage of venture capital, typically ranging from $100,000 to $500,000. It's used to validate the idea, build an MVP, conduct market research, and assemble the founding team before product-market fit.
In Simple Terms
Pre-seed is the "idea stage" money. You're not ready for a real seed round yet—you might not even have a product. Pre-seed helps you get from concept to proof that people actually want what you're building.
Why It Matters
Pre-seed is the foundation of your fundraising journey. It helps you prove the concept, build initial traction, and move closer to product-market fit. It's typically the first institutional capital you raise, setting the stage for seed, Series A, and beyond.
Example
You have an idea for a SaaS tool but need $250K to build the MVP and get your first 10 customers. You raise a pre-seed round from angel investors using SAFE notes to prove the concept before raising a $2M seed round.