What is a pre-seed round?
...no really, I'm asking for some help defining this stuff 😅
Currently this is how we at Carta create data on the subject:
1. Strip out all rounds that happen on priced equity (leaving just SAFE and Convertible Note financing)
2. Define a "round" when using SAFEs as: the total amount of dollars raised on a single valuation cap.
3. Stratify those rounds into the buckets below.
Then we get:
Angel: Under $500K
Pre-seed: $500K-$2.4M
Seed (on SAFEs): $2.5M and up
So....is this right?
Caveat here on the information we have available. Obviously it would be nice to have things like traction in revenue, number of customers, quality or progress of product, etc. But no one has those things in a trackable database, so we're defaulting by necessity to cash raised.
But the terms matter! Founders get so annoyed at investors who say they are pre-seed but demand seed-level traction (...whatever that is). Investors also get testy when founders come in with unreasonable expectations without a product or customer base.
It's all tricky and the current wording is not really helping.
So help me! Give me your definitions in the comments, point out what we should be doing differently so we can report on this part of the market with more accuracy.
Full report on funding through SAFEs and Notes out this coming week covering data through Q4 2024, by the way.
#startups #preseed #SAFEs #founders
DISCLOSURE: This communication is on behalf of eShares, Inc. dba Carta, Inc. ("Carta"). This communication is for informational purposes only, and contains general information only. Carta is not, by means of this communication, rendering accounting, business, financial, investment, legal, tax, or other professional advice or services. This publication is not a substitute for such professional advice or services nor should it be used as a basis for any decision or action that may affect your business or interests. Before making any decision or taking any action that may affect your business or interests, you should consult a qualified professional advisor. This communication is not intended as a recommendation, offer or solicitation for the purchase or sale of any security. Carta does not assume any liability for reliance on the information provided herein. © 2026 Carta. All rights reserved. Reproduction prohibited.
