Startup fundraising occurs in several rounds. The pre-seed stage occurs early on when the startup is just beginning to take off. Since there are little data and performance indicators to base investments on, the pre-seed stage is more about selling the idea to potential investors. Pre-seed funding also often involves investing your own money and receiving contributions from friends and family.
The average funding amount in the pre-seed round sits just above $500.000 in the U.S and typically doesn’t exceed $2 million.
