Metamorphosing a business dream into a successful, thriving venture is not easy at all. It takes a lot of courage. A huge dose of self-confidence, solid business acumen, a clear vision, a quick intelligent wit, and proper financial support. However, with the right kind of start-up funding, any entrepreneur can materialize their dream and take it sky-high with careful subsequent planning.
Careful planning, calculated risks, and shrewd decision-making are essential for any business. Acquiring substantial funding from a trusted investor is like hitting the jackpot, but to do so, start-up founders must be thorough with the entire process of start-up funding.
The ball starts rolling when a start-up attains pre-seed funding. So, what is it, and how to apply for pre-seed start-up funding? This article explores.
What is Pre-Seed Funding?
Pre-Seed funding is the initial step or level of funding a business requires to develop a minimum viable product. It is the earliest stage of any start-up funding process, making them extraordinarily crucial but considerably hard to acquire.
In the past few years, economies across Africa have undergone rapid transformations with the rise of numerous start-ups in the technology sector. These budding businesses have gradually evolved into major disruptors, and a key factor behind their success was their ability to secure proper pre-seed funding.
For example, Nigerian trade tech start-up Norebase has become one of the most prominent brands globally thanks to its innovative, agile, scalable infrastructure.
It was among the few companies that raised $1 million in its pre-seed funding round. That undoubtedly boosted their growth significantly.
Here are some pointers about pre-seed funding that every disruptor must know:
Acquiring pre-seed funding from investors’ venture capital firms can be pretty challenging. You may have nothing more than a ground-breaking business idea or prototype, making it extremely tough to convince investors.
Besides funds from family and friends, taking out loans is another way of getting start-up funding for your venture. Once your start-up grows, the loan acts as convertible security and turns into equity.
A vital thing to note is that not all start-ups require pre-seed funding. They are essential for businesses with high requirements of initial costs. Tech start-ups in Africa and the world need proper infrastructure to develop an MVP, making proper pre-seed funding necessary.
Venture capitalist firms are another excellent avenue for securing consistent substantial pre-seed funding. If your business idea has the power to change things and your vision is clear, then getting the pre-seed funding from a reliable firm is no challenge at all.
Blaq Ventures assures that!
Take Your Business Sky-High with One of Africa’s Largest Venture Capital Firms
Get $100K in pre-seed funding for your tech start-up in Africa and drive incremental growth with Blaq Ventures, a leading institutional investor in the African tech industry.
We extend holistic support with pre-seed funding, a 9-month-long mentorship program, and follow up with $300K to $1M injections in subsequent funding stages.
Connect with us today if you are a budding disruptor with the mindset to fly high. We will work together to make your business grow bigger and better.
Learn more about us here!