Pre seed Funding UK
It’s both exciting and challenging to start and run a business. Raising funds for the first time, on the other hand, ticks almost all of these boxes. This is something that most entrepreneurs go through throughout the pre-seed funding stage. In this blog, we’ll look at pre seed funding in the UK.
In this blog, we’ll explore
- What is pre seed funding
- Goals of a pre seed funding round
- Types and list of pre seed funding investors
- How we can help you with your Pre seed funding in the UK
What is Pre seed funding
Pre seed funding is the earliest stage of funding for a new business, providing founders with enough equity to get off the ground and is usually used to develop an early version of the product that can then be used to secure additional funding.
What’s the difference between pre seed and seed funding?
The pre seed funding round is for early-stage product development, essentially preparing the company to maximize future fundraising prospects through the formation and testing of a coordinated, effective core team and the creation of an MVP that goes beyond a prototype.
- Seed funding typically pays out more to founders than pre seed funding.
- Pre seed funding can occur before any product development, whereas seed funding requires the company to have some form of traction.
Requirements for pre seed funding
You’re probably only getting started in your business if you’ve reached this level of investment. You won’t have a solid product or a long track record of sales. As a result, it’s important to provide supporting information to potential seed investors.
- A pitch deck
- A structured plan of the business
- A prototype
Goals of a pre seed funding round
Your startup should have the following in place by the end of the pre-seed round:
- Product – a minimum viable product (MVP) that exhibits your ability to develop a polished product.
- Team — put together a relevant (skill-wise) and credible team that has demonstrated its ability to operate together.
- Market – direct and documented interactions with customers in your market that supply investors and other stakeholders with not just statistics on the market’s potential size but also signs of customer desire.
- Distribution – a growth plan that includes initial discussions with key distribution channels.
Types and list of pre seed funding Investors
Pre seed funding accelerators are a sort of startup program that provides funding, mentoring, and educational opportunities for new entrepreneurs.
Angel investors are high-net-worth individuals who invest in small businesses or entrepreneurs in exchange for a share of the company’s ownership.
Some angel investors form clubs or networks to pool their resources. As a result, each angel investor is able to see more deals than they would on their own. It’s also an excellent way for angel investors to split the costs of sourcing and vetting potential investments.
A type of angel network is crowdfunding. Essentially, you pitch your concept to internet platforms and provide ownership in exchange for individual investment.
List of UK based Pre seed funding investors
How we can help you
Drop Studio is here to get you the most out of your pre seed funding campaign. Through our investor research, we will help you find and connect with investors who currently own shares in high-growth UK businesses within your sector. You’ll also receive guidance on how to approach these investors to give you the best chance at securing funds.
You will receive ongoing support from a campaign manager as well as access to our online course. Through our project management software, you can ask specific questions and get valuable feedback. In addition, our online course will help you map out a solid fundraising strategy and teach you how to reach out to investors for your pre seed funding in the UK.
Having a professional pitch deck is essential for delivering a convincing pitch to investors. With Drop Studio’s support, you can be confident that this key part of your seed funding campaign will not only include all the crucial elements of your business plan but will also have an attention-grabbing design that is on-brand.
Our experts will guide you towards understanding how valuable your company is through a step by step valuation process. We look at your business from different perspectives thereby resulting in a comprehensive view.
We hope you enjoyed our blog. If you would like to give pre seed funding in the UK a try, you can visit our website at Drop Studio. We would love to hear from you!