PRE-SEED FUNDRAISING GUIDE: PART 5
Investors to Avoid for Your Pre-Seed Round
Do your homework before you pursue these options
Some sources of capital seem almost too good to be true. As with most things in life, if it seems too good to be true, it probably is.
In particular: Grants, Angel Groups, Accelerators, and Equity Crowdfunding. In general, these sources of capital require investing a lot of time for not a lot of money. Time and effort that could instead be spent raising from individual Angels, Micro VCs, and more ‘traditional’ investors.
But, there are certain cases where these sources of capital do make sense. Here’s how to think about and assess these sources of capital.
Equity Crowdfunding
In 2019, we evaluated Republic, the most popular equity crowdfunding website, to see if it was a good fit for our startup. I analyzed all the pre-seed companies that had raised so far (first time raising and at under an $8M cap). This came out to 32 companies, and the average they raised was $122,000.
