Thread by @neilswmurray

0) The #1 question I get from founders:

"What's a typical valuation & round size at pre-seed in the Nordics?"

Poor understanding of this has 100% contributed to shitty cap tables.

So, here's what I'm seeing, hope it's useful for founders & investors alike!

#cphftw #sthlmtech

1) I've participated in 13 pre-seed & 3 seed deals (omitted from this data) over the last 18 months & this is all based on my own deals, defining pre-seed as <$1M.

I consider the Nordics to be one market & I notably don't really see any differentiation between countries in this.

2) The median round size at pre-seed I've participated in is $400,000.

The lowest pre-seed round I've participated in is $220,000 with the highest $800,000 (three times).

Where possible/appropriate, I now advise founders to raise an _absolute_ min. of $300K, preferably $400K+

3) The median valuation I've invested at is $2.6 million pre-money.

The lowest valuation I've invested at is $1.5M (twice) & the highest $4M (once).

Using the medians of price and round size, these companies are typically giving away around 13.3% in their pre-seed rounds.

4) As for instruments, In my 13 pre-seed deals I've used convertibles/safes 7 times and direct equity 6 times.

I appreciate the pros and cons of both and ultimately am happy to be led by the founders/lead investors preference.

5) As for who else is investing at pre-seed in the Nordics, here are some people I've co-invested with on 2 occasions or more so far at pre-seed: @chrjantzen, @byFounders @seedcamp @PreSeedVentures @shewrote @TrondRiiber @hajak @byrenius @davidhelgason @StartupLabNo

6) I hope this thread opens up the black box on valuation & round size a little for Nordic founders & allows you to come to the table with the same info the other side is already armed with.

I also hope it's useful for investors who are looking to invest in Nordic pre-seeds! 💸