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Entrepreneur

Raise a Pre-Seed Round

16 weeks · 3 milestones

Raise $250k–$1M from angels or a pre-seed fund.

Milestone map

Milestone map

3 milestones

Define the round — amount, use of funds, and investor type

1–2 weeks

Define the pre-seed round before you start raising it: the amount you are raising, what specific milestones that capital will fund, the type of investor you are targeting (angel, pre-seed fund, or strategic), and the instrument (SAFE, convertible note, or priced equity). Founders who start pre-seed fundraising before defining these four things typically run a disorganised process that confuses investors and ends in a worse outcome. The pre-seed is almost always raised from a small number of people (2–8 investors), so the targeting decisions matter more than they do at later stages.

Proof required

Write a 200-word pre-seed round definition covering: (1) the amount you are raising and over what instrument (SAFE with a cap, convertible note, or priced equity); (2) the three specific milestones that this capital will fund — what you will have achieved when the money runs out; (3) the investor type you are targeting and why (angels who have operated in this space, pre-seed funds, or strategic angels — with specific names of 3 target investors and why each is a good fit); (4) what you are NOT using the pre-seed capital for (this forces prioritisation).

What gets checked

  • Three milestones are specific and measurable — not 'build the product' but 'ship a working prototype to 10 beta users and get 3 paying pilots at £500/month'.
  • Three named target investors with a specific reason each — not a generic list but people you have a real reason to target.
  • What the capital is NOT for is included — this demonstrates prioritisation, which investors value at the pre-seed stage.

Common mistakes

  • Milestones are vague: 'get to revenue' or 'prove the concept' are not milestones that help an investor evaluate whether their capital was well deployed.
  • Target investors are unnamed: 'we'll approach angels who have experience in our space' is not a targeting strategy.
  • Round definition is absent or replaced with a pitch deck: the round definition is a planning document, not a sales document.

Resources

Foundationstart here

Depthgo deeper

What a verifier looks for

  • The three milestones must be specific enough that an investor could evaluate, 6 months later, whether they were achieved.
  • Named target investors should be real and reachable — ask 'how do you know this person and why do you think they would invest in this?'
  • The round instrument should match the stage — priced equity at pre-seed with no revenue is a yellow flag; probe why it was chosen over a SAFE.

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Run the pre-seed process — first commitments

3–8 weeks

Start the pre-seed process and get to first commitments. The pre-seed is typically a faster process than the seed (fewer investors, less diligence, faster decisions) but it requires the same discipline: systematic outreach, a tracker, and learning from each conversation. First commitments — not just interest, but verbal commitments to invest — are the evidence that the process is working.

Proof required

Share your fundraising tracker (redacted investor names acceptable; amounts and status must be real). The tracker must show: total investors contacted, meetings held, and at least one verbal commitment (the amount committed and the investor type — angel, fund, or strategic). Write one sentence on the insight from the conversations so far that surprised you most about how investors perceive your business.

What gets checked

  • At least one verbal commitment is documented — interest alone is not a commitment.
  • Tracker shows a real funnel: contacted → responded → met → committed.
  • The surprising insight is specific — 'I expected investors to ask about technology risk; instead, every conversation went straight to go-to-market'.

Common mistakes

  • No commitments after 20+ investor conversations — this is a signal worth investigating: is the issue deal terms, the investment thesis, or the investor targeting?
  • Tracker has only 'interested' statuses with no commitments — interest and commitment are categorically different things.
  • Surprising insight is generic: 'investors care a lot about the team' is not surprising.

Resources

Foundationstart here

What a verifier looks for

  • A verbal commitment is someone who has said 'I'm in for X' — not 'I'm very interested' or 'send me more information'.
  • The tracker should be a real document — ask to see it in its current form, not a screenshot of a final state.
  • The surprising insight is the best leading indicator of quality: a specific observation about investor perception reveals genuine engagement with the fundraising process.

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Close the pre-seed — capital received and first milestone defined

2–4 weeks (closing)

Close the pre-seed round: receive signed agreements from all investors and receive the capital. The final evidence is the same as at the seed stage — signed documents and capital received — with one addition: the first milestone you will now pursue with the capital, stated specifically. The pre-seed is the beginning of the accountability relationship with your investors, and naming the first milestone before you spend a pound of the capital is how that relationship starts well.

Proof required

Share a redacted screenshot of the signed agreement(s) with the investment amount and date visible. Share a redacted screenshot of the capital received. Write one sentence on the first concrete milestone you will pursue with this capital — named specifically enough that your investors could evaluate in 3 months whether you achieved it.

What gets checked

  • Signed agreement and capital received are both shown.
  • The first milestone is specific enough to be evaluated — not 'build the product' but 'ship to 5 paying beta users by [date]'.
  • The milestone timeframe is realistic for the capital raised — a £50K pre-seed funding a 12-person team for a year is not realistic.

Common mistakes

  • Capital received screenshot missing — a signed agreement without capital received means the round is not closed.
  • First milestone is vague — 'continue building' or 'explore the market' are not milestones.
  • Total capital raised is inconsistent with the M1 round definition — if the target changed, name what changed and why.

Resources

Foundationstart here

What a verifier looks for

  • Both the signed agreement and the capital received must be present — same requirement as at the seed stage.
  • The first milestone should be re-read against the M1 round definition — did the milestones change between planning and closing? If so, ask why.
  • The amount raised should be plausibly achievable for the stated first milestone — a £10K pre-seed funding a 'full product build and go to market' is not credible.

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