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How to grow your startup in the pre-seed stage

Length: 

4 min

Published: 

September 14, 2023

How to grow your startup in the pre-seed stage

Usually we write about scaling your product with API tools and the right setup. Today we are going to diverge. One of our team members invests in a venture capital fund, and they have a few tips on how to avoid the common pitfalls of growing a business.

Some of you will argue that the pre-seed stage is all about charging out of the gate guns blazing. True, but a little structure and a few things to watch out for go a long way.

Key pointers for pre-seed success

Here are a few that come in handy.

  • Iterate and pivot early. Don't be afraid to fail fast, adjust, and start over.

  • Technology is not the same as a product. You can have a brilliant technological idea, but if you don't frame it and convey the message in plain business terms, you don't have something you can sell. State clearly what the problem and the solution are, and build a compelling unique selling proposition around it.

  • Don't fall in love with your product. Let your clients do that. They are the ones who will pay for it.

  • Choose your cofounders carefully. Split roles, duties, and responsibilities, and put it in writing. You are in this for the long haul.

  • Find the right investors. Look for the right chemistry and for smart money: someone who brings more than cash. And don't sell off a big chunk of your equity early on.

  • Track your metrics. Set up solid business KPIs, watch them, and steer the startup accordingly.

  • Think big, think international. Pick the right markets and move fast, because this is about winning meaningful market share. And remember that what works in one country won't automatically work in another.

  • Move fast. Speed matters in the pre-seed stage. It bears repeating.

  • Prepare the legal side. Consult good lawyers before you sign a term sheet. It can save you a lot of trouble down the road.

  • Keep your documents in order. Have the legal paperwork ready (term sheet, SHA, and the rest). Inbound investors will want to see it.

  • Build the right team. Last but not least, working with a reliable and experienced team like DX Heroes can give you a real boost.

Final thoughts

Don't let anything get in the way of your enthusiasm. Just stay aware of a few things and make sure you have someone who has your back. Don't be afraid to fail, and enjoy the ride.

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