[Interesting post by Ali Hamed about the goals of a pre-seed investment round]
Pre-Seed Investing, in my view, should not be defined by check size. I think a lot of people are tempted to describe a pre-seed investment as a “sub $1M investment,” or a ~$500k investment. And while directionally correct, or associated with seed rounds, likely isn’t their definition.
To me, a pre-seed round is a round of capital used for proving whether or not a product can be valuable to a customer.
One thing that has always bothered me is when seed investors, or pre-seed investors ask super cookie-cutter questions, like:
- What is your monthly revenue?
- What is your MoM growth?
To many investors, these are almost formulaic questions that define if they will take a meeting or not.