Eight essential reflections before your pre-seed raise
Raising early-stage capital is a high-stakes endeavour. Pre-seed and seed investors are not just investing in an idea – they’re betting on your insight, your team’s capability, and your ability to execute. At this stage, it’s less about polished metrics and more about potential, passion, and proof of concept.
So, how do you convince angel investors and VCs to back you – without a user base in the millions, years of proven traction, or seven-figure ARR?
To help you evaluate whether your startup is truly investor-ready, we’ve compiled the most critical questions to reflect on your business’s core strengths and identify areas that may need strengthening before you prepare your raise.
1. Have you uncovered a real, painful, valuable problem?
Investors seek startups addressing significant pain points. It’s not enough for the problem to be theoretical; it must be real, urgent, and felt by a substantial number of potential customers.
“Good entrepreneurs begin their pitch with a well-articulated problem statement. This helps validate that they are building a product that customers need and are willing to pay for.”
— Ellen Herlacher, Director of Tufts Health Ventures
How to assess:
Can you identify at least five individuals who experience this problem daily?
Have you gathered qualitative feedback or conducted interviews validating the existence and severity of this issue?
2. Are you the right team to solve it – and why now?
Investors bet on teams as much as ideas. They seek founders with domain expertise, resilience, and a clear vision. Your team’s background should align with the problem you’re solving, and there should be a compelling reason why this is the right time to tackle it.
“We want to see dedication and perseverance in founders, and that they are passionate about the business and will have the desire and ability to get through difficult times.”
— Melissa Guzy, Managing Partner at Arbor Ventures
How to assess:
Does your team possess unique insights or experiences that give you an edge?
Are there recent market shifts or technological advancements making your solution timely?
3. Can you tell an exciting long-term story with believable steps?
Investors are looking for visionaries who can articulate a compelling future. Your story should inspire confidence that your startup can grow into a significant business, even if you’re in the early stages.
“The goal of your first pitch deck is to get a second meeting with the investor. You are not trying to explain everything about your business... You have to edit yourself to intrigue the investor sufficiently.”
— Dave Richards, Managing Partner at Unitus Seed Fund
How to assess:
Can you clearly and intriguingly communicate your long-term vision and the steps you’ll take to achieve it?
Do you have a roadmap outlining key milestones and timelines (without drying up the story with forecasts)?
4. Are you moving fast, not just talking smart?
Execution is paramount. Investors want to see that you’re making tangible progress, even if it’s in small increments. Speed and adaptability can be more important than perfection at this stage.
“As a four-time entrepreneur, I spent well over a decade struggling through the brutality of building companies. During those years it became massively apparent to me that the only thing that matters in a startup is the delta between your product and the other solutions to market.”
— Zach Coelius, Managing Partner, Coelius Ventures
How to assess:
Have you launched a minimum viable product (MVP) that showcases your competitive differentiation?
Are you iterating based on user feedback and data, quickly enough to maintain a competitive moat?
5. Have you proven that people care (with their money, attention and network)?
Early traction is a strong indicator that you’re on the right path. This could be in the form of user sign-ups, pilot programs, or partnerships.
“Start something so interesting that people want to help you for free.”
— Sam Altman, President of Y Combinator
How to assess:
Do you have any early adopters or beta users?
Have you received positive testimonials or feedback?
6. Do you understand your users better than anyone else?
Deep user insight is crucial. Investors want to know that you can empathise with your customers and have a nuanced understanding of their needs and behaviours.
“Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.”
— Steve Jobs, Co-founder of Apple
How to assess:
Have you conducted in-depth user interviews or surveys?
Can you articulate your users’ pain points, desires, and motivations?
7. Is the market moving, and are you catching the right wave?
Timing can be as important as the idea itself. Investors look for startups positioned to capitalize on emerging trends or shifts in the market.
“I look for entrepreneurs who are tackling big problems in large markets, with a sustainable competitive advantage, who are driven and can execute, and are open to input.”
— David Lee, Angel Investor
How to assess:
Are there macroeconomic or technological trends favouring your solution?
Is the market growing, and is there a clear path to adoption?
8. Are you coachable, curious and resilient?
The journey of a startup is filled with challenges. Investors want to back founders who are open to feedback, eager to learn, and persistent in the face of adversity.
“I like founders who are coachable, as collaboration and alignment with investors is so important… It’s crucial to be flexible, iterate quickly, and make decisions fast – decision fatigue can paralyse company-building.”
— Patrick Eggen, General Partner at Counterpart Ventures
How to assess:
Are you seeking mentorship and advice from experienced entrepreneurs?
Do you demonstrate resilience and adaptability when faced with setbacks?
Assessing your startup against these eight questions can provide clarity on your readiness to approach pre-seed or seed investors. Remember, investors are looking for more than just a great idea – they want to see a team that’s capable, a product that’s needed, and a vision that’s compelling. If you can answer these questions affirmatively, you're well on your way to securing the investment you need to take your startup to the next level.
