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A founder asked me what makes a $2M round “pre-seed”? And why do we still sometimes hear about pre-seed rounds that look more like a series A in pricing and size? What’s the difference between an angel round and pre-seed round and why do I believe we’ll see more pre-seed rounds taking place in 2024?
Most founders reported (in several different surveys) that knowledge and belief in their industry/sector and personal connection is one of the key reasons they would choose one investor over another. See the recent reports by Frontline Ventures and Creandum on what makes founders choose one offer over another.
And not a particular sector, but AI startups, in particular generativeAI attracted close to $50 billion in funding last year, globally. Most of that funding went to foundational models like OpenAI, Anthropic and Inflection AI which collectively raised $18 billion in 2023. GenerativeAI is game changer.
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