🧵Tips for raising a pre-seed (and pitching Hustle Fund)
Elizabeth Yin (@dunkhippo33), GP at @HustleFundVC, recently spoke with @immad about raising a pre-seed.
She backs pre-seed startups from all over the world & has reviewed >20K pitches.
Here's what she wants you to know👇
Elizabeth Yin (@dunkhippo33), GP at @HustleFundVC, recently spoke with @immad about raising a pre-seed.
She backs pre-seed startups from all over the world & has reviewed >20K pitches.
Here's what she wants you to know👇
1. Have an MVP — even if it's just a landing page
@HustleFundVC defines pre-seed as "you've got a product, but no traction."
Revenue isn't a factor, but it's important to have a product (even if that's just a landing page where you drive traffic & get conversions.)
@HustleFundVC defines pre-seed as "you've got a product, but no traction."
Revenue isn't a factor, but it's important to have a product (even if that's just a landing page where you drive traffic & get conversions.)
2. Send a written pitch, not a video
Whether it's a Notion page or a deck, Elizabeth says written pitches are easier + quicker for investors to process.
And, if pitching live, be concise and to-the-point. She says "the faster meetings tend to be more successful."
Whether it's a Notion page or a deck, Elizabeth says written pitches are easier + quicker for investors to process.
And, if pitching live, be concise and to-the-point. She says "the faster meetings tend to be more successful."
3. It's actually OK to reach back out to funds that have rejected you in the past
If an investor passes, always ask for a reason.
If the reason is something you can control, e.g. "you're too early," you can re-approach the fund after accounting for their feedback.
If an investor passes, always ask for a reason.
If the reason is something you can control, e.g. "you're too early," you can re-approach the fund after accounting for their feedback.
4. Get to your Series A in 2 or fewer rounds, with an average dilution of 15% each
Make sure not to dilute more than half your company: a 30-35% dilution prior to your Series A is ideal.
Try to avoid extreme situations like recapitalization.
Make sure not to dilute more than half your company: a 30-35% dilution prior to your Series A is ideal.
Try to avoid extreme situations like recapitalization.
5. Send investor updates once a month if you're pre-seed or early seed
Late seed and beyond, send them once a quarter.
Investor updates don't have to be long. @dunkhippo33 suggests including updates on revenue, KPIs, runway, CAC, and 2 bullet points on what's next.
Late seed and beyond, send them once a quarter.
Investor updates don't have to be long. @dunkhippo33 suggests including updates on revenue, KPIs, runway, CAC, and 2 bullet points on what's next.
6. If you have specific asks for investors, include them right at the top of your updates
For more tips on writing great investor updates, check out @immad's thread on how he structures updates at Mercury:
For more tips on writing great investor updates, check out @immad's thread on how he structures updates at Mercury:
https://twitter.com/immad/status/1271550483266629632?s=20
Elizabeth and Immad covered a ton more in our Series Tea podcast.
Listen to the full episode for more tips on raising a pre-seed round and how early stage founders should think about go-to-market: mercury.com/blog/series-te…
Listen to the full episode for more tips on raising a pre-seed round and how early stage founders should think about go-to-market: mercury.com/blog/series-te…
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