Decide what milestone the money buys, then raise only that amount, typically enough for 18 months. In the US, use a post-money SAFE with angels and pre-seed funds; in Germany, a convertible loan or small priced round. Build a list of 50–150 targeted investors, run outreach in batches, and aim to close in 8–12 weeks.
- Size the round from milestones and 18 months of runway, not from what others raised.
- US default instrument: post-money SAFE. German default: convertible loan or capital increase.
- Typical pre-seed dilution: roughly 10–20% in total.
- Investors: angels, operator angels, pre-seed funds, accelerators, sometimes a crowd round.
- A focused process usually takes 8–12 weeks of active outreach.
Step 1: what does the money buy?
Write down the milestone that makes the next round easy: a launched product with retained users, first revenue, or a licence. Budget the cost of reaching it over about 18 months, add a buffer, and that is your round. Investors trust a plan where every dollar maps to a milestone more than a round number. Our own budget breaks down into team, product, licences, growth and a 10% buffer.
Step 2: which instrument?
| United States | Germany / much of Europe | |
|---|---|---|
| Default instrument | Post-money SAFE | Convertible loan or small priced round |
| Notary | No | Yes for shares; at conversion for loans |
| Speed to sign | Days | Days to weeks |
| Read more | SAFE vs note vs priced round | Can a GmbH use a SAFE? |
Step 3: how much dilution, and at what cap?
Most pre-seed rounds sell roughly 10–20% of the company. Work backwards from that to a cap: see how to choose a valuation cap and model every instrument with our worked SAFE example.
Step 4: who invests at pre-seed?
- Angels, especially operators from your industry.
- Pre-seed funds that lead or co-lead small rounds.
- Accelerators, which trade a cheque and a programme for equity.
- Your community, through crowdfunding where it fits. See Reg CF vs Reg D vs Reg A+.
Find them with how to find the right investors and research each one with how to research a VC in 20 minutes.
Step 5: what materials do you need?
- A one-paragraph summary you can paste anywhere.
- A 10–12 slide deck. See the pre-seed pitch deck.
- A 60-second pitch video. See how to record one.
- A simple data room. See data room checklist.
Step 6: how do you run the process?
- Build a list of 50–150 investors, segmented by stage, sector, geography and cheque size.
- Start with a small batch to test your pitch, then send the rest in waves.
- Use warm intros where you have them and well-written cold emails where you do not. See cold emails that get replies and reaching investors without a warm intro.
- Keep a pipeline: contacted, met, second meeting, diligence, committed.
- Do not announce the raise publicly unless your exemption allows it. See can you post about your fundraise?
Step 7: how long, and what does it cost?
A focused round usually takes 8–12 weeks of active work, longer in Europe or without a lead. Costs are mostly legal: low for a standard SAFE, higher for a German priced round with a notary. See how long a pre-seed takes and notary costs in Germany.
What does a pre-seed budget look like?
An example structure for 18 months. Your categories will differ, but every line should map to a milestone.
| Category | What it covers | Milestone it serves |
|---|---|---|
| Team | Founder salaries, first hire | Execution capacity |
| Product | Engineering, infrastructure, tools | Launch and core features |
| Growth | Content, events, small paid tests | Users and retention evidence |
| Legal and regulatory | Company setup, contracts, licences if needed | A clean company investors can back |
| Buffer | About 10% | Delays |
What are the most common pre-seed mistakes?
- Raising too little to reach a meaningful milestone, then raising again in six months.
- Stacking SAFEs at different caps without modelling the total.
- Pitching seed metrics you do not have.
- Spending months on investors who do not invest at pre-seed.
- Posting about the round publicly while relying on a private exemption.
- Leaving founder vesting and IP assignment for later.
What happens after you close?
Send a thank-you and the first monthly update within a month. File any required notices (for example a Form D in the US). Update your cap table and data room. Then start building the evidence your seed round will need.
Frequently asked questions
How much should I raise at pre-seed?
Enough to reach a milestone that makes the next round easy, usually around 18 months of runway with a buffer.
What instrument should I use for a pre-seed round?
In the US, typically a post-money SAFE. In Germany, typically a convertible loan or a small priced round through a notarised capital increase.
How much equity do founders give up at pre-seed?
Commonly around 10–20% across the round, depending on amount, stage and market.
How long does it take to raise a pre-seed round?
Often 8–12 weeks of active outreach, sometimes longer without a lead investor.
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Join the waitlist →Sources and further reading. Y Combinator, SAFE documents; Y Combinator Library; Carta data; SEC, Exempt offerings.
Educational material, not legal, tax or investment advice. Rules and figures change; confirm with qualified counsel or a tax adviser in your jurisdiction before acting. Last updated October 6, 2026.