Some secrets about “Seed Capital Vs. Pre-seed Capital”
Seed funding gives entrepreneur funds to give shape to the business.
Pre-seed capital is the critical stage in fundraising for the success of the startup.
There are various types of Seed funding, namely, crowdfunding, accelerator, incubator, angel funds, etc.
Pre-seed funding also comes in the form of a convertible security, which turns into equity after a specific period.
Seed funding is raised through the profile of the startup.
The main source of pre-seed capital is through personal resources, etc.
Networking, social media marketing, and market research attract Seed investors.
Business targets and goals become clear at the pre-seed funding stage.
At the Seed funding stage, the business plan takes realistic shape.
All the paperwork, documentation, and registration needs to be completed in the pre-seed funding stage.
The startup should reach a certain level of maturity for Seed funding.
Thorough research
work is required at the pre-seed capital stage to prepare the pitch.
An essential tool
for raising funds through Seed funding is the “pitch deck.”
Startups should
raise capital as much as they can in the pre-seed stage.
It is required to
choose the correct investor for raising Seed funds.
Overfunding of pre-seed
capital results in reckless spending of funds.
The amount that
can be raised through Seed funding depends upon the valuation, growth
record, and risk involved in the startup.
Pre-seed funding defines the
expansion and development of the startup.
Seed funding helps in
creating a business network.
Pre-seed capital covers the
expenses until the next round of funding.
Seed funding dilutes the risk among the stakeholders of the business.
Pre-seed capital is an essential part of fundraising.
The seed funding process takes up to 12-18 months runway.
Pre-seed investors such be chosen as per their trustworthiness.
A good pitch deck for Seed funding is conciseness that includes solutions to the problem.
Pre-seed capital provides investors with enough equity to take off from the ground.
Seed capital enables businesses to show their potential.
Pre-seed capital is used to develop the early version of the product line.
Seed funding is a part of series ‘A’ funding for the startup
