any equity you sell on preseed should be treated as a kind of cofounder
raising a meaningfully dilutive pre-seed is one of the worst mistakes you could make in this current market.
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honestly this is true for any fundraising in new market. when investors have access to high ROI assets in crypto you should never be raising from anyone who can only value it if they sell
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selling more than 25-30% of the company at seed
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Series B is the new pre-seed
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pretty cool idea you've got there stu, how bout I toss you 40M to test drive it a bit
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But some people don't have a choice if they're lucky to get funding at all particularly at the preseed round
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yes. this is a very bay area take. not that there’s anything wrong w that! but we see a lot of seattle founders get this advice, turn down pre-seed, fail to get seed from all those valley funds that are “super excited”, then back with tails btw legs raising preseed at lower caps.
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This is contextual because it depends on the core founding team, stage of product, maturing of pmf and revenues. 750K at 15% is set as market price if the startup is meaningfully weak in one of these categories, in which case, you are right: it a death sentence.
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Well, depends on what you’re doing. If you need a big biotech lab or tones of compute for machine learning, it can make sense
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