Pre-Seed Funding

What is Pre-Seed Funding?

Pre-seed funding is the earliest stage of financing for a startup, often used to develop a concept or business idea. This stage typically involves small investments from the founders, family, friends, or angel investors. Pre-seed funding helps cover initial expenses such as research, product development, or market validation before the startup progresses to formal seed funding.

Sources of Pre-Seed Funding

• Founders’ Personal Savings: Using personal funds to get the business started.
• Friends and Family: Receiving support from close connections who believe in the idea.
• Angel Investors: Early-stage investors who provide small amounts of capital in exchange for equity.

Related Terms and Concepts

Seed funding, angel investment, early-stage startup, bootstrapping