Start With Customers Not Investors

For our Seed Capital series of podcasts, I’ve interviewed hundreds of investors, especially micro-VCs and angels who play an important role in the early-stage game. The toughest round of funding an entrepreneur will seek to raise is Pre-seed. How do you increase your odds?

Pre-seed has the lowest probability of success. Over 99% of the entrepreneurs who seek financing are rejected. 

So, my humble advice to all entrepreneurs: please learn to assess your own probability of getting funded.

I would like you to start with the basics of how we advise startups:

• Do not go to VCs as beggars. Go as Kings.
• Do not chase Investors before chasing Customers.

Negotiation is a straightforward game. You can only negotiate if you have options. 

I have mentored entrepreneurs now for well over two decades. I always try to help them create negotiating leverage.

There is nothing that gives entrepreneurs more leverage than customers and revenues.

The further you can get in terms of building traction WITHOUT external funding, the more negotiating leverage you will have.

If you need help with your Pre-seed Funding, join 1Mby1M Premium.

So, what is your current situation? 

How much validation do you have? 

What do you think are your odds of raising Pre-seed?