What is pre-seed?

Pre-seed funding is the initial investment or funding given to a startup or a new business idea before any formal seed funding round. It is used to cover some of the startup essentials such as product development, market research, hiring employees, and other expenses that are needed to get the startup off the ground.

Pre-seed funding is usually provided by friends, family, angel investors, or venture capitalists who are interested in investing in the startup at an early stage. The amount given in pre-seed funding is typically smaller than that in seed funding rounds, ranging from a few thousand to tens of thousands of dollars.

The primary goal of pre-seed funding is to help startups build a prototype, proof of concept, or minimum viable product (MVP) that they can use to attract potential investors and customers. The funding also enables startups to validate their ideas and test the market before raising more funds in the seed stage.

Overall, pre-seed funding is a crucial stage for startups looking to take their ideas from concept to reality and securing further investment to scale and grow the business.