The pre-seed phase refers to the earliest stage of a start-up’s development. At this stage, an initial idea is developed into a more concrete business model.
The main aim is to find out whether there is a relevant problem, whether the proposed solution is suitable for addressing it, and whether there is, in principle, demand for it in the market.
Typical tasks during the pre-seed phase include:
- Define the problem and target group more precisely
- Analysing the market and competitors
- hold initial meetings with clients
- Review assumptions about the business model
- put together a founding team
- develop a prototype or a minimum viable product
- carry out initial tests with potential users
A fully developed product or high turnover is not usually expected at this stage. What is more important is that founders gather initial evidence that their idea can solve a real customer problem.
In the pre-seed phase, funding is often provided by:
- own financial resources and bootstrapping
- Family and friends
- Business Angels
- Funding schemes and start-up grants
- Incubators and accelerator programmes
Possible objectives of the pre-seed phase are:
- a clearly defined customer problem
- an initial, validated solution proposal
- a working prototype or an MVP
- positive feedback from the market
- a robust business model
- Preparations for the seed funding round
A common mistake is to invest too much time and money in product development at too early a stage. Before building a comprehensive solution, you should check whether potential customers actually have the problem and are willing to pay for a solution.
innoWerft supports founders at this early stage in evaluating their business ideas, gaining a better understanding of their target audiences and market potential, developing initial business models, and preparing for the next steps in their start-up and funding journey.