Master the 5-Point Framework That Gets Funded
Getting pre-seed funding in 2025 feels like pushing a boulder uphill. Funding volumes are down, valuations are under pressure, and early-stage founders are dealing with their toughest fundraising environment in years. About 42% of all pre-seed funding rounds now total less than $250,000, up from 30% just two years ago. Some startups still manage to break through and secure the funding they need.
What makes the difference between getting funded and getting rejected? NEA partner Tiffany Luck has a clear answer. Speaking at TechCrunch's All Stage event in Boston, she outlined the "perfect pitch" formula that has helped countless startups navigate challenging fundraising waters. Her framework focuses on five key elements: What, two Whys, Who, How, and Numbers. We at Rise N Shine look at how in today's competitive market, executing these elements well isn't just helpful. It's essential.
This isn't about building another generic pitch deck. With only 10% of startups succeeding each year, founders need a framework that cuts through investor fatigue and shows real progress. The founders who nail this approach don't just raise money. They raise it faster and get better terms.
The Current Pre-Seed Reality Check
Pre-seed founders need to understand what they're up against before diving into the framework. The average pre-seed valuation sits at $5.7 million, with a median of $5.3 million. These numbers only tell part of the story. Fundraising in 2024 became much tougher for pre-seed startups. Many now need revenue before raising their first institutional round.
The bar has moved up significantly. Investors who once bet on pure potential now want proof of concept and early market validation. By 2025, seed check sizes have grown. Many startups are raising amounts closer to $1M to $3M or more. But valuations now reflect higher expectations around progress and market validation.
The Five-Element Framework That Works
1. The What: Problem Definition That Resonates
Your opening must immediately show why this problem matters and why it matters now. The strongest pitches don't just identify a problem. They communicate in a way to investors to feel the pain personally.
Start with concrete examples. Instead of saying "small businesses struggle with inventory management," show a specific restaurant owner losing $50,000 annually due to overstock and spoilage. Simplicity helps and shows clarity of vision, according to startup strategy experts.
The demo element cannot be overstated. As Luck emphasized, "If you think a picture is worth 100 words, a demo is worth 1,000 hours." For pre-seed pitches, your demo doesn't need to be a fully-featured product. A simple prototype, mockup, or even a well-crafted scenario video can demonstrate your vision effectively.
Key Metrics to Include:
Market size affected by the problem
Current solution inadequacies (cost, time, efficiency gaps)
Your solution's measurable advantage
2. Why You (Founder-Market Fit)
Pre-seed investors bet on people first, ideas second. They need to understand why you're uniquely positioned to solve this problem. This goes beyond credentials. It's about demonstrating obsession and domain insight.
The strongest founder stories combine personal experience with measurable preparation. Don't just say you understand the problem. Quantify your understanding. Show the hours of research, the customer interviews conducted, the prototypes built before raising a dollar.
What Investors Want to See:
Personal connection to the problem
Domain expertise or relevant experience
Evidence of deep customer understanding
Commitment signals (time invested, personal resources deployed)
3. Why Now (Market Timing)
Timing can make or break a startup. Your pitch should clearly explain why the market is ready for your solution now. This isn't about generic trends. It's about specific catalysts that make your solution inevitable.
Look for convergence points. The most compelling "Why Now" slides show multiple trends aligning: technological advances, regulatory changes, behavioral shifts, and market dynamics all pointing toward your solution.
Timing Indicators to Highlight:
Technology enablers that weren't available before
Regulatory changes creating new opportunities
Behavioral shifts (especially post-pandemic changes)
Economic conditions favoring your approach
4. The Who: Team Chemistry and Complementary Skills
Use storytelling to make your pitch relatable when introducing your team. Investors want to see not just individual qualifications but team chemistry and role clarity.
The strongest team slides show complementary skills through visual formats. Consider using a skills matrix or Venn diagram that demonstrates how each founder's expertise fills gaps that others cannot. Include brief quotes from each founder explaining their personal motivation for the venture.
Team Elements That Matter:
Complementary skill sets
Previous collaboration evidence
Shared vision and values
Advisory support or early hire plans
5. How and Numbers: Traction and Learning Velocity
For pre-seed startups, traction isn't always about revenue. It's about learning velocity and validation momentum. Show how quickly you're iterating and what you've discovered about your market.
Create a feedback loop visualization. Demonstrate how user input translates into product improvements and how those improvements drive better metrics. This shows investors you're not just building. You're building intelligently.
Pre-Seed Traction Metrics:
User feedback scores and iteration cycles
Customer interview insights and pivots
Early prototype performance data
Market validation experiments and results
Real-World Success Stories
Recent pre-seed success stories reveal common patterns in how founders apply this framework. Successful pre-seed startups consistently apply proven fundraising strategies rather than reinventing the wheel.
Companies that secured funding in the current environment shared several characteristics. They demonstrated clear problem-solution fit through early customer validation. They showed founder-market fit through domain expertise or personal experience. They presented market timing through specific trend analysis rather than broad generalizations.
Advanced Execution Strategies
The Demo Strategy
Your demo should create an "aha moment" within seconds. For pre-seed startups, this might be a clickable prototype, a customer testimonial video, or a simple before-and-after comparison. The goal isn't to show a finished product. It's to prove your vision is achievable and valuable.
The Metrics Story
Demonstrate proof to investors using clear, quantitative benefits that validate the product. Even without significant revenue, you can show meaningful metrics: customer acquisition cost trends, user engagement improvements, or operational efficiency gains from early pilots.
The Competitive Positioning
Don't ignore competition. Reframe it instead. Show how existing solutions validate market demand, then demonstrate your differentiated approach. The best pre-seed pitches position competition as proof that customers will pay for solutions in this space.
Common Pre-Seed Pitch Mistakes
The Technology Trap: Don't lead with features. Avoid deep technical details in your pitch deck and focus on the key elements of your business plan. Investors care more about market opportunity than technical complexity.
The Perfect Solution Fallacy: Admitting uncertainty shows wisdom, not weakness. Share what you don't know and how you plan to find out. This demonstrates intellectual honesty and systematic thinking.
The Traction Overstretch: Don't inflate modest metrics. A few enthusiastic early users provide more credibility than inflated vanity metrics. Quality of evidence matters more than quantity at pre-seed stage.
The Pitch Delivery Framework
Opening Hook (30 seconds)
Start with a relatable problem statement or surprising statistic. Begin with a compelling introduction that grabs attention and sets the stage for your presentation.
Core Story (8-10 minutes)
Flow through your five elements chronologically. Each section should build logically on the previous one, creating narrative momentum toward your ask.
Q&A Preparation
Prepare backup slides for deeper dives. Common pre-seed questions focus on market size validation, competitive differentiation, and founder commitment signals.
Valuation and Ask Strategy
The median pre-money valuation for seed rounds in Q1 2024 was $10.2 million. Pre-seed rounds typically value companies significantly lower. Your ask should reflect realistic milestones you can achieve with the funding.
Structure your ask around specific outcomes. Instead of "we need $500K for 18 months runway," say "we need $500K to acquire 1,000 paying customers and prove unit economics, positioning us for a $3M seed round."
Market Context and Investor Expectations
Understanding current market dynamics helps calibrate your pitch approach. Series A median deal size dropped 17% to $5M, creating narrowing valuation gaps that challenge startups. This means pre-seed founders must show a clearer path to meaningful milestones.
Investors increasingly focus on capital efficiency and sustainable growth models. Show how your approach conserves cash while building scalable customer acquisition systems.
Building Your Pre-Seed Pitch Deck
Next Steps and Action Items
The perfect pre-seed pitch isn't just about slides. It's about demonstrating founder-market fit through systematic execution. Start by validating each element of your pitch through customer conversations and market research.
Build your demo first. Whether it's a prototype, mockup, or customer interview compilation, having something tangible to show transforms your pitch from theoretical to concrete. This single element often determines whether investors lean in or check out.
Practice your pitch with founders who've successfully raised pre-seed rounds. Their feedback on timing, flow, and investor psychology proves invaluable for calibrating your approach.
Getting pre-seed funding takes more than a good idea. It requires a systematic approach to proving your concept deserves investment. The five-point framework gives you that system. Now you need to execute it with precision and authenticity.
Ready to build your winning pre-seed pitch? Start with the problem validation. Talk to 50 potential customers before writing a single slide. Share your founding story in the comments below or subscribe for more fundraising insights as we track the evolving pre-seed scene.
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