What is the difference between pre seed and seed phase

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Community Member
Jun 23, 2023
2 answers
Accepted Answer
Jun 23, 2023
Below are some high-level definitions with ranges. Please note that the metrics vary by region and sector.

Traction: Idea -> Early Signal of Product-Market Fit
Product: Prototype -> Customer Product usage
Team: Founders -> Core Founding Team
Revenue: No Revenue -> First Paying Customers/Pilots

Traction: Paying Customers -> Product-Market Fit with Core Customers
Product: Early User Retention -> Growth in Product Usage
Team: Core Founding Team -> First Employees 
Revenue: First Paying Customers/Pilots -> Expanding Customer Base
Community Member
Jun 23, 2023
IMO Pre-Seed is the first institutional round, with the Angel Round before that.  I wrote a detailed blog about this as well as a Twitter Thread.  My stage definitions(as of mid 2023). the bar has gone up in the last 12 months for each stage.

Pre- product, ideation maybe wireframe
raising < $0.5 M
valuation <$6M post-money

Early revenue, $50K+ ARR
Product in the market for > 3 months
raising < $500K-$2M
valuation <$10M post-money

~$500K+ ARR
Material customers, good logos, pipeline
raising $2M - $5M
valuation <$25M post-money

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