Pre-seed is about proving customer value, not revenue.
Consider a restaurant: The KPI to track is not whether customers ate & paid, it’s whether they finished their plates, took some food home, and came back again.
(more wisdom from @AliBHamed)
Consider a restaurant: The KPI to track is not whether customers ate & paid, it’s whether they finished their plates, took some food home, and came back again.
(more wisdom from @AliBHamed)
Prove customer value so you have an idea of what LTV is.
Don’t spend money acquiring customer before you know how valuable those customers are you.
If you’re customer is worth $100K to you, you can hire a sales team
If they’re worth $2K, you need to do marketing & ad-campaigns
Don’t spend money acquiring customer before you know how valuable those customers are you.
If you’re customer is worth $100K to you, you can hire a sales team
If they’re worth $2K, you need to do marketing & ad-campaigns
Seed funds expect these businesses to already be growing, but without a hypothesis on what LTV is, you can't know how to best acquire customers.
If you prove customer value, you earn the right to go raise a seed round & get more customers
Series A is to scale CAC channels.
If you prove customer value, you earn the right to go raise a seed round & get more customers
Series A is to scale CAC channels.
