Deciding whether to raise pre-seed money now
Outside money starts a clock: once angels own part of the company, they expect a venture-sized outcome and a next round within about eighteen months. Before writing a single investor email, a first-time founder should test whether customer revenue, a grant, a part-time job or savings could carry the company to the same point without giving away a slice of it.
First tasks
- List what the company must spend over the next twelve months
- Note which costs savings, revenue or a grant could cover instead
- Write one paragraph on why this business needs outside money to win
- Record the raise or wait decision and its reopening trigger