The ratification of this checklist cannot be refuted. Once the idea becomes the headlamp of the startup machine, and the team is ready to drive, all that is needed is the fuel of funding to embark on a passionate expedition, covering countless miles.
Regarding funding for startups, venture capital is the best way to sow the seeds in the preliminary stages. Not just because of the quotidian belief of venture capital being safe, but also because it unbolts many opportunities that are otherwise difficult to chase.
According to a report published by African Private Equity and Venture Capital Association on Venture Capital in Africa Report 2022, more than 81% of technology or technology-enabled startup companies across various sectors dealt with venture capital firms.
Thus, the trial on how venture capital firms can help startup businesses grow exponentially wins with this single statistical data alone!
Pre-Seed Funding: The Protagonist of this Monograph!
If the startup business funding is yearned during the initial phases, the most advisable decision to make here would be none other than, pre-seed funding.
It is safe, secure, and has the flexibility to churn the opportunities currently present at hand. A small mention-worthy anecdote would strengthen the above-stated further.
A Nigerian trade technology startup, Norebase, started with a vision to create an Utopian platform for various businesses to scale and operate across the continent. And how was this vision transfigured into a booming business, is answered right in the heading of this article!
Approaching venture capital firms, Norebase acquired a sensational pre-seed funding amount of $1 million.
Therefore, a wise decision taken at the correct time for the business makes all the difference. A venture capital firm offering pre-seed funding would have the competence to fly your startup reaching the limits.
However, a vital note here is to understand in what ways that happens and how it does add a great significant value.
Merits of a Venture Capital Firm for a Pre-Seed Startup
Explicitly elucidating how a venture capital firm can help a startup, which is seeking pre-seed funding, the foremost pitch that can be highlighted here is the flexibility of using the capital fund.
Pre-seed funding can be used for developing a prototype, building a stronger team, buying resources, experimenting with risks, and much more. And for a startup, these are essentials that become the stepping stones for a bright future.
Most importantly, for a pre-seed startup, beyond funding what is even more worthy is getting the right guidance and mentorship.
Not just funding, but various value-added contributions at every level; explore today and chase the dreams of an aspiring entrepreneur.