Pre-Seed Funding: How Much Founders Raise, From Whom, and What They Give Up (2026)
Pre-seed funding is the first outside money a startup raises, usually before it has meaningful revenue and often before the product is finished. In the US it is almost always raised on SAFEs: in Q2 2026, 93% of pre-seed rounds on Carta used one (Carta, 2026). The average check was $276,000, and the typical post-money cap sat between $10 million and $15 million.
TL;DR: US startups on Carta raised $3.19 billion of pre-seed money in Q2 2026 across more than 11,500 SAFEs and notes, with a record average size of $276,000 (Carta, 2026). Median post-money SAFE caps were about $10 million for rounds of $250K to $1M and about $15 million for $1M to $2.5M (Carta, 2026). A $500K to $1M round cost founders a median 11.2% of the company in 2024 (Carta, 2024). Raise on a post-money SAFE with a cap, raise enough for the milestones that get you to seed, and keep dilution well under 20%.
What Is Pre-Seed Funding?
Pre-seed funding is the capital that takes a startup from an idea and a founding team to a product with early proof that people want it. It comes before the seed round, usually from angels, pre-seed funds and accelerators, and it is usually raised on a SAFE or a convertible note instead of priced shares (Carta, 2026).
The money typically pays for three things:
- Building the first version of the product, or turning a prototype into something customers can use. Our guide on how to build an MVP covers that part.
- Customer discovery: interviews, pilots, a waitlist, the first paying users.
- Founder runway: enough months for the founders to work on it full time.
There is rarely a board seat or a long due diligence process at this stage. Investors are betting on the team and the problem, because there is not much traction to look at yet.
A "pre-seed company" is simply a startup at this stage: it may have a demo, a few design partners or a small amount of revenue, but it has not raised an institutional seed round.
Pre-Seed vs Seed: What Is the Difference?
Pre-seed is smaller, earlier and riskier than seed. A pre-seed round funds the first product and the first proof of demand. A seed round funds growth once that proof exists. In Q4 2025 the median seed round on Carta was $4.5 million at a $24 million post-money valuation (Carta, 2026), many times the size of a typical pre-seed check.
| Pre-seed | Seed | |
|---|---|---|
| Typical size | Average SAFE or note: $276,000 (Q2 2026) | Median round: $4.5M (Q4 2025) |
| Typical price | Median post-money SAFE cap: about $10M to $15M (2025) | Median post-money valuation: $24M (Q4 2025) |
| Usual instrument | SAFE, in 93% of rounds (Q2 2026) | SAFE or priced equity |
| Who writes checks | Angels, pre-seed funds, accelerators | Seed funds, often with a lead investor |
| What investors look at | Team, problem, early evidence of demand | Usage, retention, first revenue |
Sources: Carta State of Pre-Seed Q2 2026 (2026), Carta State of Pre-Seed 2025 (2026), Carta State of Private Markets 2025 (2026), Carta on SAFEs (2026).
The line between the two is not fixed. Some founders raise a large "pre-seed" that looks like a small seed, and many raise several small SAFEs over a year instead of one clean round. For the full ladder from pre-seed to Series A, read our startup fundraising guide.
How Much Do Startups Raise in a Pre-Seed Round?
Most pre-seed rounds raise a few hundred thousand dollars to about $2.5 million, assembled from several checks. On Carta, the average pre-seed SAFE or note was $276,000 in Q2 2026, up 27% from a year earlier and the highest in more than four years, and few pre-seed deals exceeded $2.5 million (Carta, 2026).
Keep in mind that $276,000 is the size of one instrument, not one round. A round is often five or ten SAFEs from different angels and funds, signed over weeks or months.
The market is getting more concentrated. Total pre-seed cash in Q2 2026 was about the same as a year earlier ($3.19 billion against $3.22 billion), but the number of instruments fell about 22% (Carta, 2026). Fewer startups are getting checks, and the ones that do get bigger ones. AI startups took 49% of pre-seed dollars in the first half of 2026 (same source).
How much should you raise? Work backwards from the milestone that gets you to seed, then add a buffer. Carta puts the median time from seed to Series A at 1.9 years (Carta, 2026), and fundraising itself takes months, so plan for at least 18 months of runway after the round closes. Our burn rate guide shows how to turn a monthly burn into a runway number.
What Valuation Is Normal at Pre-Seed?
At pre-seed the "valuation" is usually the valuation cap on a SAFE, and it scales with the size of the round. In 2025 the median post-money cap on Carta was about $10 million for rounds of $250K to $1M and about $15 million for rounds of $1M to $2.5M (Carta, 2026).
| Pre-seed round size | Median valuation cap | Period | Source |
|---|---|---|---|
| Under $250K | $7.5M | Q2 2025 | Carta |
| $250K to $1M | About $10M (post-money) | 2025 | Carta |
| $1M to $2.5M | About $15M (post-money) | 2025 | Carta |
| Over $2.5M | $35M, up 40% year over year | Q2 2026 | Carta |
Caps are rising. Carta reports higher median caps across SAFEs of every size over the past year, and the spread is wide: the 90th percentile cap was 2.5 to 3.5 times the median (Carta, 2026). An AI startup with a known team in San Francisco and a solo founder in a smaller market will not get the same terms, and neither should benchmark against headlines.
The cap is a ceiling on the price at which the SAFE converts in your next priced round, not a check written at that value. If you want to sanity check a number before you send a term sheet, the startup valuation calculator gives a range from your stage and traction, and startup valuation by funding round explains how later rounds are priced.
How Much Equity Do Founders Give Up at Pre-Seed?
Pre-seed dilution depends mostly on how much you raise. On post-money SAFEs in 2024, the median dilution was 7.1% for rounds of $250K to $499K, 11.2% for $500K to $999K and 17.2% for $1M to $2.4M, across more than 2,400 startups (Carta, 2024).
The math on a post-money SAFE is simple: the investor's ownership at conversion is the amount invested divided by the post-money cap.
Worked example. You raise $750,000 on post-money SAFEs with a $10 million cap. At your seed round those SAFEs convert into $750,000 / $10,000,000 = 7.5% of the company, before the seed round's own dilution. If instead you raise $500,000 at an $8 million cap and $250,000 at $10 million, you sell 6.25% + 2.5% = 8.75%. Stacking SAFEs at different caps adds up quickly, so keep a running cap table. The dilution calculator models it for you.
Accelerators follow their own math. Y Combinator invests $500,000 in two SAFEs: $125,000 for a fixed 7% and $375,000 on an uncapped SAFE with a most favored nation clause (Y Combinator, 2026). YC's own example: at a $15 million post-money cap, the second SAFE converts into 2.5%, so the deal costs about 9.5% in total.
Where is the danger zone? Carta calls selling 30% at pre-seed "far above the market median" (Carta, 2025). Every point you sell now is a point you cannot use later for seed investors, the option pool or your first hires. Our equity dilution guide follows the same founder through every round.
Who Invests in Pre-Seed Startups?
Pre-seed investors are mostly angels, dedicated pre-seed funds and accelerators, plus friends and family for the very first checks. More than 90% of angel and pre-seed rounds on Carta go through SAFEs (Carta, 2025), so whoever you raise from, expect the same instrument.
| Investor type | What they usually offer | What they look for |
|---|---|---|
| Angel investors | Small individual checks, often fast, plus advice and intros | A founder they trust, a problem they understand |
| Pre-seed funds | Larger checks than angels, sometimes leading the round | A big market and a team that can ship |
| Accelerators | Standard deal (YC: $500K for about 7% plus an MFN SAFE) and a program | Speed of execution, progress during the batch |
| Friends and family | The first money, before anyone else | Trust in you more than the business |
How do you find them? Start with people who already invest in your space, such as founders who exited, operators at companies your customers use and angels who post their portfolios. For example, a developer tools startup has better odds with angels who built or sold a developer tool than with a generalist fund. Startup databases help you build the list; our comparison of the best startup databases for investors and founders covers the free and paid options. If you are weighing an accelerator, read how to get into a startup accelerator first.
Location still matters. California took 52% of US pre-seed dollars in Q2 2026, up from 42.9% a year earlier, and Texas passed New York to become the second state at 9% (Carta, 2026). If you are outside these hubs, online platforms and remote angels do more of the work.
Should You Raise Pre-Seed on a SAFE or a Priced Round?
Raise on a post-money SAFE with a valuation cap unless you have a specific reason not to. In Q2 2026, SAFEs covered 93% of pre-seed rounds and 95% of the capital, and 91% of those SAFEs were post-money (Carta, 2026). That is the default investors and lawyers expect.
The details of current SAFEs, from the same Carta data:
- Cap: 94% of post-money SAFEs in the first half of 2026 had a valuation cap.
- Cap only: 73% of capped SAFEs used the cap as the only price mechanism.
- Cap plus discount: 21% added a discount rate on top.
A SAFE is cheaper and faster than a priced round: no board, no share price to negotiate, standard documents from YC. The trade-off is that you do not see the real dilution until the SAFEs convert. For investors it is also not stock yet: the SEC points out that a SAFE gives no current equity stake or voting rights, and converts only on a trigger such as a priced round or an acquisition (SEC, Investor.gov, 2017). Serious angels know this, which is why they care about your plan to reach a priced seed round. A priced round can make sense when a single lead investor wants it, usually on larger rounds. Our SAFE vs convertible note comparison explains when a note is the better tool. Once you start granting options to your first hires, you will also need a 409A valuation.
How to Raise a Pre-Seed Round, Step by Step
A pre-seed round is a short, focused sales process: a target, a list, a story and a deadline. These steps follow the order most founders use.
- Set the target. You get: a round size and a cap you can defend. Do this: estimate 18 to 24 months of burn plus a buffer, then pick the cap band that matches the size (see the tables above). You are done when: you can say "we are raising $X on a post-money SAFE at a $Y cap, to reach Z" in one sentence.
- Collect evidence. You get: proof that the problem is real. Do this: customer interviews, a waitlist, pilots, a first paying user. You are done when: you have numbers or names, not adjectives.
- Build the investor list. You get: 50 to 100 names that fit your stage and sector. Do this: angels in your space, pre-seed funds, accelerators, warm intros from founders. You are done when: every name has a reason to care and a path to an intro.
- Prepare the deck and the data room. You get: material an investor can read in five minutes. Do this: follow our pitch deck guide and keep a simple folder with the cap table, the SAFE template and your metrics. You are done when: a friend outside your industry can explain your business after reading the deck.
- Run the process in a tight window. You get: momentum, because investors move when others move. Do this: book first meetings within two or three weeks, follow up within 24 hours, share progress. You are done when: you have a first committed check, which usually makes the next ones easier.
- Close and paper it. You get: money in the bank and a clean cap table. Do this: sign the SAFEs, collect wires, update your cap table and model the conversion. You are done when: every SAFE, cap and amount is recorded in one place.
Common Pre-Seed Mistakes
Most pre-seed problems show up later, at the seed round, when the SAFEs convert and new investors read the cap table.
- Selling too much too early. Giving up 25% or 30% at pre-seed leaves little room for seed, the option pool and hires. Carta's data puts that well above the median (Carta, 2025).
- Stacking SAFEs without tracking them. Ten SAFEs at five different caps can surprise you by several points at conversion. For example, adding $250,000 at an $8 million cap to a $500,000 SAFE at $10 million costs 3.1 points, not 2.5. Model them before you sign the next one.
- Raising too little. A round that runs out before you hit seed-ready milestones forces a bridge on worse terms.
- Benchmarking against AI headlines. The 90th percentile caps are 2.5 to 3.5 times the median (Carta, 2026). Price against the median for your stage and market.
- Pitching investors who do not do pre-seed. A Series A fund will not lead your first round. Check stage and check size before you ask for the meeting.
Where Startupage Fits
Investors at pre-seed back founders they can see and trust. On Startupage you can create a free founder profile with revenue verified through your payment provider, then publish your open round as an opportunity so it appears next to other startups that are raising. In November 2026 more than 20 startups had an open pre-seed round listed on Startupage pre-seed rounds. If you are on the other side of the table, find investors and open rounds shows who is raising right now.
Sources: Carta State of Pre-Seed Q2 2026 (2026), Carta State of Pre-Seed 2025 (2026), Carta State of Pre-Seed Q2 2025 (2025), Carta on SAFE caps, Q2 2026 (2026), Carta pre-seed map Q2 2026 (2026), Carta on SAFE dilution (2024), Carta on 30% dilution (2025), Carta on time between rounds (2026), Carta State of Private Markets 2025 (2026), Y Combinator standard deal (2026), SEC investor bulletin on SAFEs (2017).
Frequently Asked Questions
How much should I raise in a pre-seed round?
Raise enough to reach the milestones a seed investor will ask for, plus a buffer: usually 18 to 24 months of runway. On Carta the average pre-seed SAFE or note was $276,000 in Q2 2026, and few pre-seed deals passed $2.5 million (Carta, 2026). Most rounds combine several checks.
What is a typical pre-seed valuation?
At pre-seed the valuation is usually a SAFE cap. In 2025 the median post-money cap was about $10 million for rounds of $250K to $1M and about $15 million for $1M to $2.5M (Carta, 2026). SAFEs above $2.5 million had a median cap of $35 million in Q2 2026 (Carta, 2026).
What is the difference between pre-seed and seed funding?
Pre-seed funds the first product and early proof of demand, mostly from angels, pre-seed funds and accelerators on SAFEs. Seed funds growth once that proof exists, usually with a lead fund. In Q4 2025 the median seed round was $4.5 million at a $24 million post-money valuation (Carta, 2026).
How much equity do you give up at pre-seed?
It depends on the amount raised. On post-money SAFEs the median dilution was 7.1% for rounds of $250K to $499K, 11.2% for $500K to $999K and 17.2% for $1M to $2.4M (Carta, 2024). Selling 30% at pre-seed is far above the median, according to Carta (2025).
Do you need revenue to raise pre-seed funding?
No. Pre-seed investors mainly back the team and the problem, because most companies at this stage have little or no revenue. What they want to see is evidence: customer interviews, a waitlist, pilots or a first paying user. Revenue helps, and verified revenue on your profile makes it easier to trust.
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