Pre-Seed
The earliest fundraising stage, typically raising $100K-$2M from angels or small funds.
Definition
Pre-seed is the first formal fundraising stage, occurring before a traditional seed round. Companies at this stage usually have a founding team, an idea or early prototype, but little or no revenue. Pre-seed rounds typically raise $100K to $2M using SAFEs or convertible notes from angel investors, friends and family, or specialized pre-seed funds.
Why it matters
If you join at the pre-seed stage, you are taking maximum risk but getting the largest equity grants and lowest strike prices. Your shares could be worth a lot if the company succeeds, but the failure rate is very high.
Example
Two founders raise $500K from angels on a SAFE with a $5M valuation cap. They use the money to build an MVP and get their first 10 customers. Six months later they raise a $3M seed round.