Funding and ownership
Pre-seed
The very first outside money, raised on little more than an idea, the founders and perhaps a prototype. It usually comes from friends and family, angel investors or accelerators. In the UK it's often done under SEIS, and often through an advance subscription agreement or convertible note, which turns into shares later, rather than by selling shares at a fixed price.
A plain-English explanation, not financial or tax advice. Rules and rates change, so check your own situation. For free, impartial guidance, try MoneyHelper. Disclaimer.
You'll hear it as
We raised a small pre-seed from angels to build the MVP.
Why it matters to you.
Investors are backing the founders, not the numbers. For anyone joining, it's the riskiest stage: tiny team, everyone does everything, and equity matters more than salary.
Videos.
Mentioned in 1 video, plus more on Business & startups.