Feb 26, 2023

A Beginner's Guide to Pre-Seed Funding and How it Can Jumpstart Your Startup



Will Gaines

Pre-seed funding is a type of seed funding that occurs before the company has launched its product. It's typically used to fund the development of a product or service, and it can be either convertible or non-convertible (a convertible note).

Pre-seed investors are generally high-net-worth individuals who want to get in on early opportunities in order to reap the rewards when their companies go public or get acquired by larger companies. They often have experience with startups themselves, so they know what questions to ask founders about their business plans and goals.

This is different from the typical seed round of investing. If you want to learn more about how you can use digital assets for pre-seed & seed round investing, investigate Acquire.Fi and their Web3 M&A marketplace.

Pre-seed vs. seed funding: What’s the difference?

Pre-seed funding is about validation and getting out of the gate. Seed funding is about taking off. Pre-seed investments are typically for companies that have an idea, but no real product built yet--they need money to get things going before they can raise later rounds from bigger investors.

Seed investments are typically made by experienced entrepreneurs or angel investors who understand how startups work and want to see them succeed. They're looking for companies that already have some traction or proof of concept, but need additional capital in order to scale their business even further. And with seed investments, you have many options, you can even use crypto now. 

The importance of pre-seed funding for startups

Pre-seed funding is an important step in the startup process. It can help you get your business off the ground by allowing you to hire employees, create a prototype, and get your business plan together. Pre-seed investors are often interested in investing in early-stage companies because they want a chance at making big returns on their investment as soon as possible (like any investor). The downside of this type of investment is that it usually comes with strings attached--you may have to give up some shares or equity in exchange for their money!

Another way pre-seed investors help out startups? They provide founders with advice on how best to run their company so that when they launch publicly there aren't any problems with scaling up operations later down the line.

When should you start raising pre-seed funding?

Pre-seed funding is a great way to get your startup off the ground. You should start raising pre-seed funding as soon as possible, especially if you have an idea that could change the world and make money at the same time.

Pre-seed funding can help you test your idea before investing in it more heavily. If people don't like what you're doing, then it's best not to waste any more time on them or their ideas. For example, you could use the Acquire.Fi Web3 Marketplace to see whether or not people are interested in investing in your project using digital assets.

Pre-seed funding is an important early-stage investment that can help your company get off the ground.

Pre-seed funding is an important early stage investment that can help your company get off the ground. Pre-seed funding is ideal for startups that have not yet validated their business model or product, but who want to test their idea and start hiring employees.

Pre-seed investors are usually willing to invest anywhere between $50,000 and $500,000 in exchange for equity in the company they're investing in. They will expect you to receive more money after this initial round of investment (usually called Series A) if you do well with it.


Pre-seed funding is a great way to get your startup off the ground. Pre-seed investors are looking for companies that have strong product ideas and teams with the potential to succeed. They're willing to invest early in exchange for equity and an opportunity to help shape your company's future. If you're looking for funding but don't have enough capital yet, consider applying for a pre-seed round before moving on to more traditional seed funding options like angels or VCs. And remember if you’re looking to raise funds, consider a cryptocurrency platform. Acquire.Fi as a reputable Web3 marketplace could be the ideal starting place for you. 

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© 2023 Acquire.Fi | All rights reserved.

© 2023 Acquire.Fi | All rights reserved.