<aside> 🧑🏻‍💻 As experienced VCs operating in the pre-seed/seed space for over 10 years, we understand the considerations that founders should keep in mind when seeking funding. Below, we have compiled a list of important factors to keep in mind as you navigate the investment landscape and make informed decisions about the right partners to bring onboard. By keeping these considerations top-of-mind, you will optimize the chances of securing the right investment partners and building a strong foundation for your business.

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<aside> 💸 Expertise of the fund:

• Not all funds that claim to do pre-seed/seed investing have the expertise to do so effectively.
• You need to research the fund's track record (from a pre-seed/seed POV) and understand their strengths and weaknesses.
• It may be more beneficial to work with a seed-only fund that can help set the company up for future rounds of funding and support the development for the Series A. </aside>

<aside> ❓ Working with a Series A fund for your pre-seed/seed round:

• While it may be tempting, it can be risky to work with a Series A focused fund during pre-seed and seed… For one, Seed and Series A are different jobs and reauire different types of support. For two, if the Series A fund leaves a lot of room for other investors during the Series A round, it sends a negative signal to other funds in the market.
• We think the best strategy is to collaborate with seed-only funds that will be able to reinvest in future rounds and introduce your company to top Series A funds. Seed specialist funds that have a proven track record and a strong network within the industry carry the weight and credibility needed to introduce your company to A Players in the market. </aside>

<aside> 💡 Alignment with fund's philosophy:

• You want to make sure your vision and the fund's investment philosophy are aligned to avoid conflicts down the line.
• This will foster clear communication and mutual trust, leading to a successful partnership with the fund </aside>

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Fund's network and resources:

• In addition to funding, a good VC fund should bring a wealth of resources and connections to the table.
• You should evaluate whether a fund's network can help you achieve your goals. </aside>

<aside> 🎯 Realistic fundraising targets:

• Setting overly ambitious fundraising targets, particularly during the pre-seed and seed stages when the product is still evolving, can shut doors for founders. Once a door is shut, it can be challenging to reopen it.
• Be realistic about the amount of funding required and the stage of development of your company. Start low, end high. </aside>

<aside> 📈 Avoiding overvaluation:

• Avoid asking for excessive funding. If venture capitalists are interested, they will offer more investment. It's better to secure a smaller round of funding successfully than to aim high and fall short.
• Even if you manage to raise at a huge valuation, this can prevent you from raising next round even with legit numbers. Again, start low, end high. </aside>

Complete List

https://www.creditmutuel-innovation.eu/fr/index.html