Funding for pre-seed projects – Making dreams come true

The inception of every business starts with a top-notch idea that is always expected to be rewarding. However, without unassailable pre-seed funding or  startup business funding, the dream would look light years away from reality!

Thus, irrespective of being a small business startup or a medium-scaled one, without funding, the tottering legs can never race a marathon. 

Here is an exemplary anecdote that would advocate justifiably the above statement;

In January 2020, entrepreneur, Obinna Molokwu founded his startup, Kwaba. In order to boost financial liquidity in Africa, the digital platform facilitates house rental payments by offering an innovative solution.

Naturally, it posed itself as a small business startup, but what was exceptionally noticeable about Kwaba was the funding that is aimed for. At the right moment, making the right decision and reaching the right guys for their pre-seed funding, the startup was able to live the dream in reality.

Why and How does Pre-Seed Funding Matter? Experts Testify…

The critical juncture of any business flags off from its pre-seed funding stage. 

When beginning with a small business startup, one of the rudimentary actions that are imperative is raising pre-seed funding. In reality, the formula for steady growth in business can be applied to any type of startup with capitalized funding.

A riveting fact here; over 600 applications were received from seven countries as part of a campaign to receive funding applications. Now imagine the demand for startup business funding in Africa! This makes it very clear why you unavoidably need pre-seed funding for your startups.

Traveling to this point, you must be thinking, well, what are the possibilities you can discover with pre-seed funding for your business. 

At a seed stage, when you are asking for startup business funding, you should be coherent about your business roadmap and what are the financial allotments of the respective funding amount received. 

Work on a chart that includes, 

  • Your fixed business expenses
  • Your business’s profit margins
  • Your business’s miscellaneous costs
  • Your previous year’s sales figures
  • Your targeted revenue estimations

This would give you crystalline clarity on why you are seeking the pre-seed funding and would automatically foster confidence in you while asking for it. 

Successful startup funding testimonies and case studies have exhibited the ideal range of pre-seed funding which you can ask for. Start somewhere from $50,000 and go bold in asking up to $200,000 if you patronize your idea like a parent. Advisably, settle for a 5% – 10% equity stake minimum.

Which Type of Pre-Seed Funding is Ideal for Startups?

Now that you have breathed a sigh of relief as to how to get the startup business funding sorted, the immediate next baffling thing to stumble upon is to analyze what type of pre-seed funding sources to choose from.

Types of pre-seed funding can start from the most innocuous partners which are friends and family, and further shift towards more professional forms of angel investors, crowdfunding, and venture capital firms. 

Regardless of being a small business startup or a maturing one, the most undebated and best form of procuring pre-seeding funding is venture capital firms. 

Studies show the mammoth rise of investment record in African startups by venture capital firms in 2021 to be that of a jaw-dropping number, which is $5.2B!

And that leaves no room for doubt as to what to choose when it comes to raising pre-seed funding for your startup.

The Right Team, the Right Path…

Each entrepreneur is striving toward being a potential contributor to the economic pipeline of this continent. When aspiring entrepreneurs have the right direction, the right path, and the right partners, its true essence will reflect.

Cognized as a venture capital firm dedicated to small business startups and tech startups, Blaq Ventures can be the messenger of your idea to the world. 

With various contributions made beyond the funding finances, Blaq Ventures believes in its mission of investing in Africa’s upcoming unicorns. 

Don’t let your startup business funding wait to become another night’s dream content; live it today with Blaq Ventures!