How to choose pre-seed funding investors?
There’s no doubt that pre-seed funding has gained prominence in India in recent years as more and more startups have emerged. Owing to its importance in this early-stage development of products and services, pre-seed funding is responsible for the make-or-break moment for any startup. That is why it is important to ponder upon the factors that will help startups set the expectations for investors in future rounds and create a long-term relationship with them, rather than simply securing the funding to start up.
After knowing the principles of pre-seed funding, and the amount that you think needs to be raised, it is now time to know how to choose your pre-seed investors and how to impress them.
Trustworthiness- choosing the right investors that have faith, trust and a good track record at this stage will help find pre-seed investors that will stick around with you till the end.
Problem solvers- while selecting investors, it’s important to see their track record in solving problems that a startup might experience in its initial stage. The speed and the experience they have in dealing with startups problem will prove beneficial for you in the long run.
Finding connection- startups need to find investors who have a good connection in the industry and the market and with whom they can really connect. An investor who can set a straight record, offer the right advice, and is passionate about the product is just the priceless investor that the founders are looking for.
Align interests– investors that have an aligned interest with the startup are the key to establishing a successful business with the founder and the industry.