What Investors Look For in Pre-Seed and Seed Stage Startups

Securing funding in the early stages of a startup — especially at pre-seed and seed — is one of the biggest hurdles for founders. At this point, traction is minimal, teams are small, and the product might still be in development. So how do investors decide where to place their bets?

In this article, we break down what angel investors, seed-stage VCs, and micro-funds are really looking for in early-stage deals — drawing from insights shared at Global Capital Network (GCN) events and global investment trends.

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🔍 Pre-Seed vs. Seed: Key Differences

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🧠 What Investors Evaluate at This Stage

1. The Founding Team

“Investors bet on people, not just ideas — especially early on.” – GCN Panelist, Angel Investor

Early-stage investors want to see:

• Complementary skills (e.g. technical + business)

• Grit, passion, and adaptability

• Domain expertise or lived experience

• Coachability and track record (even in other industries)

2. The Problem and Market

• Is the problem painful and real?

• Is there a large, growing market (TAM/SAM/SOM)?

• Is the founder clearly obsessed with solving it?

Use market stats to back up your claim:

According to CB Insights, 35% of startups fail because there’s no market need.

3. The Product or Prototype

Even at pre-seed, some proof of concept helps:

• Lo-fi MVPs

• Early customer feedback

• Wireframes, demos, beta testers

At seed, you’re expected to have:

• A usable MVP

• Some traction (even if minimal)

• Feature roadmap

4. Traction Signals

Traction isn’t just revenue. It can include:

• User growth or engagement

• Waitlists

• Partnerships or LOIs

• Press mentions

• Testimonials

5. Go-to-Market Strategy

Investors want to know:

• How you’ll acquire users

• Sales channels and pricing

• CAC vs LTV projections (even rough)

6. Vision and Exit Potential

They’re looking for a bold but believable vision:

• Where’s this going in 5–10 years?

• What’s the path to $100M+ value?

• Who might acquire you — or could this IPO?

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💡 Common Mistakes Founders Make at Pre-Seed/Seed

• ❌ Overbuilding before validating the market

• ❌ Focusing too much on product, not enough on customer

• ❌ Weak storytelling or unclear pitch

• ❌ Fuzzy or unrealistic financials

• ❌ Not addressing risk mitigation

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💰 The GCN Perspective on Early-Stage Investment

At Global Capital Network, we’ve evaluated thousands of early-stage companies for our investor showcases. The best-performing startups tend to:

✅ Tell a compelling story that connects with investors emotionally
✅ Use data and customer insights to justify their vision
✅ Have a founding team that communicates well and understands their gaps
✅ Show clear momentum — even if small

We recommend crafting multiple versions of your deck:

• 1-minute overview

• 5-minute investor pitch

• Detailed investor follow-up deck

GCN’s pitch coaching and investor feedback loop help founders strengthen their materials before and after each showcase.

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📋 What to Include in Your Pitch Deck at This Stage

1. Problem

2. Solution / Product

3. Market Size

4. Business Model

5. Go-to-Market Plan

6. Team

7. Traction / Milestones

8. Financials & Ask

9. Vision / Roadmap

10. Why Now?

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🧭 Conclusion: Focus on Momentum, Not Perfection

Early-stage investors understand that your startup is a work in progress. What they want to see is momentum, clarity, and founder-market fit. Show that you’re learning fast, building smart, and surrounded by people who believe in your mission.

Even if you’re not yet raising, start building those relationships now. Platforms like Global Capital Network allow you to stay visible, pitch in stages, and update investors as you grow.

The best early-stage startups treat fundraising not as a transaction — but as the start of a long-term investor partnership.