πŸ‘‹Β  Welcome to all rockstar founders! This guide will help you navigate through the Dutch pre-seed scene and empower you to find the best fitting early-stage investor.

<aside> πŸ’‘ This guide is aimed at early-stage SaaS, Marketplace, and Platform startups. The tips & tricks do not apply to hardware businesses, services businesses, or other types. Funding requirements will be different(!)

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πŸ’ΈΒ  Raising Pre-Seed

The earlier you raise capital, the more expensive it will be. We always advise founders to bootstrap through the launch of the business. This will give you the opportunity to build an MVP, validate demand, pivot a few times, and find your product-market-fit without the pressure of external investors. However, we know this is easier said than done...

If raising capital is crucial for the business, we would always advise founders to go for convertible notes as this postpones the valuation discussion. In this guide, we segmented different types of investors, including the Family, Friends & Fools, Business Angels, government-funded funds, funds associated with accelerators and incubators, as well as VCs that invest in pre-seed stages. ****

Most investors stay on board for a fairly long time (between 5 to 10 years on average). Therefore, we highly encourage founders to do proper investor Due Diligence. This will ensure that you know what your investor can bring to the table (besides capital). With the current market, you can be as demanding about your investor as they are about the investment.

<aside> πŸ’‘ What we do not discuss in this map is Crowdfunding or Corporate (strategic) funding options. Although both sources can be great to attract seed capital, raising from these alternatives does most often not go hand in hand with raising VC funding as there is potential strategic misalignment. There is no right or wrong, it is just another path to potential success!

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πŸ‘¨β€πŸ‘©β€πŸ‘§β€πŸ‘¦Β  FFF - Family, Friends & Fools

The first, and most easy way, to raise initial capital is from acquaintances. In the finance world, we describe the first line of support as the 3F's: Family, Friends & Fools. You should be able to build conviction with this group as, after all, they know you like no one else does. But be wary - early-stage investing is a risky business and you don't want to ruin Christmas parties if things turn south.

If you do not have a rich uncle or wealthy friend don't be discouraged. There are a lot of (wise) fools out there that you might convince based on your team's skillset, early proof, and amazing business opportunity. Think about your former professor at University, the owner of that fancy restaurant, or former colleagues and/or managers that know how you operate.

<aside> πŸ’‘ Be wary that the FFF's are probably not experienced with investing in startups and this can result in weird expectations, terms, and valuations. To make sure you know the basics read venture deals to learn about best practices in venture capital investments.

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