In today’s ecosystem the rounds and valuations that venture capitalists are getting have skyrocketed. This added with the trend of founders attempting to raise funds earlier than ever ends up with a complicated situation. Pre-Seed is important because of this.
The market is offering a solid framework for this pre-seed round. They usually don’t give up any immediate equity, but still compensates the investor by capping the valuation. Or sometimes offering discounts.
Tal Zackon, a VC, tells how this pre-seed present opportunity to validate the promises to all the stakeholders. And also, what other advantages this round has.
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