You’ve got early traction, a scrappy team, and the conviction that your idea could reshape a market. Now you’re gearing up to raise your pre‑seed round, but here’s the first fork in the road: how much should you actually raise?
Too little, and you risk stalling before you reach meaningful milestones. Too much, and you might give away equity you’ll wish you still had down the line. Plus, investors will expect progress that may outpace your current stage. Finding the “just right” number isn’t just about math, it’s about vision, strategy, and discipline. In this post, we’ll break down how to calculate the right raise for your startup, how investors think about round size, and how to make sure every dollar works like a teammate.
Your raise is more than capital, it’s your time horizon, your milestone engine, and a story about your clarity. Here’s why the raise amount sets the tone:
The best founders raise enough to execute, but not more than they can justify.
There’s no universal number, but most pre-seed rounds fall between $250K and $1M, sometimes more in major markets, less elsewhere. Here’s how to tailor it for your own journey:
Start with a basic runway model. Think 12–18 months forward and itemize:
💡 Example:
If your projected burn is $20K/month and you want 15 months = $300K. Add a 15% buffer and you’re targeting ~$345K.
Money without milestones is just burn. You’re not raising to survive, you’re raising to build proof.
Pick 2–3 milestones that you want to reach with this capital. For pre‑seed, this could be:
These milestones help you answer two investor questions:
Once you know how much you want to raise, pressure-test it against a reasonable post-money valuation.
If your pre‑money valuation is $2M:
At pre‑seed, most founders aim to keep dilution between 10–20%. More than that may raise eyebrows unless your traction justifies it.
Keep in mind:
If you're torn between raising more or less, here are smart ways to thread the needle:
The goal? Keep your round lean, focused, and milestone-driven, without boxing yourself in.
When founders raise just the right amount, everything tightens: the storytelling, the urgency, the clarity of direction. You know what the money is for. You know what the next milestone is. And you’re not raising to raise, you’re raising to win.
Think of your raise like a runway, but also like a compass. It should point toward a clear next stage, not just a bank balance. When you set your raise based on progress, not pressure, you build trust, control, and momentum that compounds.
Capwave AI is your complete fundraising system. It helps you raise smarter, faster, and with way more clarity. Once inside, you’ll get access to Capwave Academy for tactical founder education and AI-powered tools to prep your pitch, match with aligned investors, and track real progress throughout your raise.
Our Closing Checklist is your go-to for financial storytelling. From target raise calculators to use-of-funds templates, we help you show investors what they need to see while staying in control of your vision.
Whether you're raising your first round or gearing up for the next, Capwave gives you the structure to close with confidence.
Your pitch deck isn’t just a slide deck, it’s your first impression. Your momentum on paper. But if it’s confusing, cluttered, or just plain forgettable, it won’t open doors.
At the pre-seed stage, the bar is low, but the expectations are high. Investors aren’t asking for perfection. They’re looking for clarity. A reason to care. A reason to bet on you. In this guide, we’re breaking down the pitch deck mistakes that quietly kill fundraising momentum, and showing you how to fix them fast.
Too many founders start building slides before they know what story they’re telling. The result? A deck that feels scattered, not strategic.
Fix it: Before opening Google Slides, write your pitch out like a two-minute story: problem, solution, why now, why you, where it’s going. Then build slides that follow that arc, no filler, no fluff.
Your deck isn’t a blog post. If every slide is jammed with text, no one’s reading it, and your message gets lost in the noise.
Fix it: One idea per slide. One sentence to support it. Let visuals breathe. Use headlines that say something, not just label sections. Think: “Retention doubled in 30 days”, not “Traction.”
You don’t need a brand studio. But you do need to look like you gave a damn. Sloppy decks = sloppy perception.
Fix it: Keep fonts and colors consistent. Align text. Ditch screenshots that aren’t legible. Clean = credible, and credibility is currency at pre‑seed.
At this stage, investors are backing you. If your team slide is just job titles and headshots, you’re underselling the asset.
Fix it: Tell them why this team wins. Show relevant experience. Highlight founder-market fit. And if it’s just you? That’s fine, just show grit and clarity of purpose.
“We’ll figure it out later” doesn’t fly. Investors don’t need a 5‑year financial model, but they do need a simple explanation of how money moves.
Fix it: Keep it real. “$20/month subscription.” “5% take rate on each transaction.” One sentence, no jargon. If your model changes, that’s okay. Just show you’ve thought it through.
A great product that no one uses… isn’t great. Decks that skip distribution come across as incomplete.
Fix it: Be specific. How do you get your first 50 users? What channels are you testing? What traction signals are you seeing? It doesn’t need to be perfect, it just needs to be real.
No competition = red flag. Either you're in denial or you're not thinking big enough.
Fix it: Acknowledge the landscape. Position yourself. Show what’s broken about the current options, and how you win. Even if it’s just being faster, cheaper, or more focused.
You’ve told a great story, and then… nothing. No clear round size. No use of funds. No timeline. That’s a missed opportunity.
Fix it: Be direct. “We’re raising $400K to extend runway, launch v1, and onboard 3 pilot customers.” Help them help you. Show the plan, not just the dream.
Gut check: does your deck answer the why you, why now, why this in 3 minutes or less?
If not, cut the clutter. Trim the fat. Make your story undeniable. Because the best decks don’t just look good, they feel like momentum.
At pre‑seed, clarity beats polish every time. Investors aren’t looking for guarantees, they’re looking for signal. And your deck? It’s how you send it.
So tell a story that sticks. Lead with what matters. And remember: your deck isn’t just a pitch, it’s a window into how you think, build, and lead.
Every deck tells a story. The great ones tell it fast, clean, and with conviction. Don’t aim for perfection, aim for alignment. Because when your deck is dialed in, it doesn’t just get opened, it gets shared.
Need help structuring your story? Capwave’s Pitch Deck Template gives you a clean, proven framework to craft a deck that hits what investors want, without second‑guessing every slide.
Raise smarter. Use Capwave AI.
Pre‑seed fundraising isn’t just about metrics, it’s about momentum. And momentum can come from places founders often overlook, like partnerships.
A well-placed strategic partnership can give you faster access to users, early proof points, and an added layer of credibility when it’s time to fundraise. Whether it’s a distribution partner, a marquee pilot customer, or a co-marketing ally, partnerships can do more than support your product, they can actually elevate your story to investors.
In this post, you’ll learn how to source the right partners, structure mutually beneficial relationships, and use those partnerships to strengthen your pitch, your progress, and your pre‑seed raise.
At the earliest stage, you’re selling possibility, and investors are looking for anything that derisks your vision. That’s where a strategic partner can do heavy lifting.
Say you don’t have hundreds of users yet, but you’ve landed a co‑pilot program with a recognizable brand in your niche. That signals trust. It tells an investor, “This founder is scrappy, connected, and already has market validation, even if it's early.”
Even a small partnership can lead to:
The best part? You don’t need 10 partners. One right partner can unlock investor attention and customer confidence faster than a big ad budget ever could.
The best partnerships at pre-seed aren’t just big names, they’re aligned allies who can help you validate, distribute, or co‑build.
Start by thinking: who already reaches your ideal customer? Who benefits if your product exists? Who’s already solving an adjacent problem?
Here are a few ideas:
Once you have a list, aim for quality over quantity. A single distribution ally with a tight, engaged audience is more valuable than a dozen vague “let’s keep in touch” calls.
You’re not asking for favors, you’re proposing a win-win.
When you reach out to potential partners, make your pitch crystal clear:
Keep it brief and respectful. And wherever possible, connect your proposal to a specific outcome:
“We’re building an AI workflow tool for indie law firms, our MVP’s ready, and we’re looking for 2–3 early pilot partners to test onboarding flow and surface key pain points. If it’s a fit, we’d love to co-feature learnings and give your team early access to shape the roadmap.”
The more specific and useful you are, the more likely you’ll get a yes.
At pre‑seed, even informal partnerships can be powerful, but you want clarity.
If it’s a pilot, define the scope: number of users, timeline, outcomes. If it’s co-marketing, set expectations: email lists, content pieces, social media posts. If it’s an advisory or strategic collaboration, put it in writing, even if lightly. A short memo of understanding or a Notion doc that outlines goals and responsibilities is often enough.
Structure builds confidence, not just for the partner, but for the investors watching.
And once you’ve structured the partnership, track results. How many users did you gain? What feedback came from their network? Did conversion improve? Those signals matter more than vague "we're exploring a few partnerships" lines in a deck.
This is where most founders miss the opportunity. You secured a partnership, great. But now what?
Integrate that story into your pitch:
In updates, highlight partnership wins:
This not only keeps your investors engaged, it gives them material to forward to others, creating an organic amplification loop for your raise.
Not every partnership is created equal, and some can even slow you down. Here’s what to avoid:
Build lean, build focused, and track every collaboration like it’s an asset, because it is.
If you’re pre-revenue, pre-product, or just pre-proof, partnerships can be your secret weapon. They’re the fastest way to show outside validation, build in the open, and signal that you're not building in a vacuum.
Done right, they create leverage, traction, credibility, distribution, and that’s exactly what early investors want to see. If you want your deck to resonate, partnerships give it heartbeat.
So before you start another cold investor email, ask yourself: who could I partner with to unlock credibility, insight, or momentum today? Because a well-placed partnership doesn’t just make you more fundable, it makes you harder to ignore.
Capwave AI helps founders turn smart partnerships into fundraising fuel. Use our Capital Raising Playbook to learn how to embed partnerships into your narrative, structure early deals, and convert traction into capital.
Wondering how to show traction before your pre-seed raise? Here’s your playbook to signal real investor interest, without needing revenue or hype.
You’ve got an MVP, or at least a clickable prototype, and maybe a few user interviews under your belt. But when it’s time to raise your first check, investors keep asking: “What traction do you have?”
If you’re not bringing in revenue yet (and most pre-seed founders aren’t), that question can feel impossible. The good news? You don’t need a hockey-stick growth chart to raise pre-seed capital, you just need the right kind of signals.
In this post, we’ll walk through exactly what early-stage investors see as traction, how to build it from scratch, and how to package your learnings into a compelling narrative that gets meetings, and funding.
At the earliest stages, investors aren’t expecting scale, they’re looking for proof. Not of success, but of movement. Here’s the hierarchy of traction signals:
Traction isn’t one number. It’s a collection of choices, learnings, and momentum.
If someone’s willing to pay anything before you’ve scaled, that’s powerful. Even a few hundred dollars validates urgency and value. Investors know that’s hard to fake.
Tip: Don’t wait for the product to be “ready.” Frame it as an early-access program or “founding customer” experience. Add value through support, not just software.
No revenue? No problem. But you still need proof that users care. Show:
That’s traction investors trust, especially if you’ve only been live for weeks.
Investors at this stage want to see fast cycles: assumption → test → insight → iteration.
Example:
That’s more impressive than 10,000 empty signups. It shows you’re listening, testing, and improving rapidly.
Not launched yet? You can still build traction. Here’s how:
Talk to 30+ potential customers. Get their language, their pain points, and document everything.
Cap it off with:
Build something you can test in days, not weeks. A Figma prototype. A Notion page. A Calendly + Stripe setup.
Then measure:
Show investors a timeline:
That’s real traction. Because it’s not just activity, it’s progress.
“We have 1,000 waitlist signups” is meaningless without context. Are they qualified? Are they converting? Are they even real?
Instead: “We had 500 signups in 48 hours after sharing with one niche community. 18% clicked through to the onboarding form. We followed up with 10 and converted 4 to early access.”
Investors are skeptical of unsigned deals or vague partnerships. Show proof of action, not just interest.
Don’t hide weak spots. Instead, highlight what you’re learning and how fast you’re moving to improve.
Use 1–2 clean slides with:
Keep it tight. Tell a story. Show growth, mental and actual.
If you’re raising pre-seed, don’t worry about perfect metrics. Worry about sharp insights. Are you learning fast? Are you showing that users care, even a little? Are you closing small but meaningful wins?
That’s what moves investors. That’s what gets funded.
Capwave AI helps founders turn early traction into investor-ready narratives. Use our Investor Outreach Guide to organize your signals, tell a sharper story, and connect with pre-seed investors who understand your stage.
You’ve got early traction, maybe an MVP, and now it’s time to raise outside capital. But one of the trickiest early questions founders face is: “How much equity should I give up in my pre-seed round?”
It’s not just about numbers. It's about control, momentum, and setting the tone for future rounds. The wrong move now can make later rounds harder, or more expensive. But don’t stress: in this guide, we’ll break it down clearly, without jargon. You’ll leave knowing how to calculate a fair deal, negotiate confidently, and raise without regret.
Most pre-seed founders give up between 10–20% equity, and there's a reason that range holds steady across markets.
✅ Rule of thumb: If you’re giving away more than 25% at pre-seed, pause. Something’s off, either your valuation is too low or you’re trying to raise too much too soon.
Pre-seed isn’t about raising as much as possible. It’s about raising enough to hit your next milestone (usually a compelling seed round).
Example: If your MVP and traction goals cost $300K, build your raise and valuation around that, not just a round number.
Valuations at pre-seed are more art than science, but not totally arbitrary.
Formula:
Raising $250K at a $2.5M post-money valuation = 10% equity given.
Raising $400K at $2M post-money = 20% equity.
If your raise would push you over 20%, ask:
Not all capital is equal. If an investor brings:
…then giving up 1-2% more may be a smart trade.
💡 Pro tip: Keep a “strategic investor scorecard” to weigh equity vs. value.
Let’s break it down with a realistic example:
$350K ÷ $2M = 17.5% equity
Now add in:
Total dilution = ~28-30%
That’s still founder-friendly but now you understand what’s going where. Cap tables are like chessboards: it’s not about your first move, it’s about three moves from now.
A messy or top-heavy cap table can scare off future investors. Be clear, clean, and conservative early on.
Equity isn’t just a math problem, it’s a relationship. Avoid investors who bring control issues, vague terms, or no true interest in your space.
Pre-seed fundraising is all about momentum and mindset. The right equity deal balances ownership, control, and execution power.
Want to make sure your pitch, valuation, and investor ask are dialed in?
Giving up equity isn’t about losing control, it’s about gaining momentum. Nail your number, back it with logic, and you’ll not only raise smarter, you’ll set the foundation for a round investors actually want to join.
Capwave AI can help. Our Fundraising Pitch Deck Template is built to help you structure your raise, set smart valuation anchors, and walk investors through your logic with clarity and confidence.
Early traction wins closed rounds. Yet many founders wait until their product is polished, or worse, until they raise, to show investors something meaningful. A smarter move? Launch a beta test now, before fundraising. Beta testing isn’t just a QA step. It’s validation, early feedback, and investor-ready credibility wrapped into one.
This guide walks you through how to design a beta test that proves traction, creates feedback loops, and signals to investors that you're execution-ready. And yes, Capwave.ai can help you capture and present those insights with clarity and confidence.
A beta test without clear outcomes is noise. Set 2–3 key goals before going live, such as:
Set benchmarks (e.g., 50 sign-ups, 30% engagement). Goals focus your testing, and give investors a clear signal once you share results.
Your beta isn't for everyone. Look for:
Tools like waitlists, Slack channels, or founder communities work well. Pro tip: Add them to early updates, these voices can validate your story early on.
A great beta experience feels personal. At launch:
Let their feedback inform your product and your pitch story. That responsiveness says volume, especially when changes come back as a direct response.
Beta control isn’t just anecdote, it’s numbers. Monitor:
Graph the changes, even small wins show investors you can iterate and influence behavior.
Here’s where the magic happens. Once your beta is live:
It’s not just traction. It’s evidence you’re learning, shipping, and iterating, and that investors get value from backing your execution, not just your idea.
Capwave isn’t just about investor matching, it’s about transformation-ready storytelling:
Beta testing isn’t just about fixing bugs, it’s about proving your vision works in the real world. A well-run beta tells investors more than any slide deck ever could: that you can build, launch, listen, and adapt. It shows you’re not guessing, you’re gathering evidence. And that evidence becomes the traction, story, and confidence you’ll need when you step into investor meetings. In short, a thoughtful beta test can turn your idea into something investors can’t ignore.
Ready to turn your beta into your biggest traction story yet? Launch smart, capture insights, and fundraise from a place of strength, with Capwave AI guiding the way.
Start turning product validation into investor-ready momentum today.
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