∞Direct answer
Direct answer
Your stage sets what you must prove. At pre-seed, show a clear problem. Show early proof. At seed, show product use. Show what users tell you. At Series A, show a model that can repeat. Keep records ready for review. Set the round by the next clear milestone, its cost, and cash runway. Runway is how long cash can last. There is no set revenue goal.
Use the stage to set the proof
A stage is not a score. It is not a mark of firm quality. It shows the key open question. Does the team know the problem? Can it build a product users use? Can it grow a model that starts to repeat?
Y Combinator says most founders need proof beyond an idea. [1] The mix will vary. It can include product, use, and growth. Fit the proof to your market. Also fit it to your sales cycle, cash needs, and country.
Pre-seed: prove the problem and early validation
Say what the user problem is. Say who has it. Say why old options fail. Say why your team can solve it. Bring user talks, a prototype or demo, design partners, waitlist signs, pilot lessons, or other direct proof. Mark what you saw. Mark what you assume. State what you will test next.
Link use of funds to one clear milestone. It may be a working product. It may be a regulated pilot or a tech proof point. It may be a set of user talks. Pre-seed has no set revenue figure. Deep-tech, marketplace, and enterprise products need different proof.
Seed: link product progress to customer evidence
Show that the product helps a defined user. Sort active use and pilot results. Include paid or unpaid user promises. Mark each one. Add feedback. Add repeat-use notes when useful. Show how the product plan uses the main lesson.
Show the path to the next fundable milestone. Add your first niche. Add go-to-market tests and a work plan. State key risks. State the early signs you will review. Do not call pipeline revenue. One client does not prove a market that can repeat.
Series A: show repeatability and governance readiness
Series A needs a company picture that can be checked. Show a clear user story. Show a clear product story. Add proof of revenue quality where it fits. Say what repeats. Say what is still a test. There is no set revenue bar. Enterprise, consumer, biotech, and hardware firms mature at different speeds.
Open a data room before diligence speeds up. Due diligence means checks before an investment. YC lists firm records, financial data, IP, securities history, key deals, disputes, and work matters. [2] A cap table shows who owns shares. Check it. Log key decisions. Assign IP to the firm. Share open issues early.
Build the round from the milestone backwards
Start with the milestone that can help a next round. It may also help create a sound path for the firm. List staff, product work, customer work, compliance, tools, and a cash reserve. Turn this into cash needs and a real runway. Test a base plan. Test a tight plan. YC also links the sum raised to the next fundable milestone. [1]
This is an example, not a benchmark or advice. A software team may fund 15 months of product work, client setup, and security work. The aim is to test a paid launch that can repeat. The budget sets the sum. The milestone sets the sum. Another firm's round does not.
Prepare for checks and assess the investor
Keep one current story. Keep a clean cap table. Keep material contracts, financial records, customer proof, and a log of assumptions. AI can sort research. It can spot gaps. It can tailor outreach. It must not make up traction, legal conclusions, customer claims, or diligence answers. The founder must check each claim.
Check each investor too. Ask about stage and sector fit. Ask how it decides. Ask about follow-on funds and conflicts. Ask for references from similar founders. British Business Bank says to do due diligence both ways. Do your own research. Talk with past investees before you sign. [4] In the US, Rule 506(b) has set terms. These include no general solicitation. The SEC page was last reviewed on 21 September 2026. Rules vary by route and country. Get qualified local legal advice. [3]
FAQ
Frequently asked questions
Do I need revenue to raise pre-seed?
Not always. Show a sound view of the problem. Show early proof for your company. Say what proof you have. Say what you need to test.
What changes from seed to Series A?
Seed links product work to customer learning. Series A needs a story that can repeat. It also needs full company, financial, IP, and agreement records for diligence.
How much should I raise?
Start with the next milestone. Add its cost, a reserve, and real runway. Sector, country, hiring, and cash needs count. There is no one round size.
Can AI write investor materials or diligence answers?
AI can speed up drafts and sorting. The founder must check each claim, metric, customer point, and legal point against good sources. AI text is not proof.
REF
Sources
- 1
Y Combinator
A guide to seed fundraising ↗ - 2
Y Combinator
Series A diligence checklist ↗ - 3
U.S. Securities and Exchange Commission
Private Placements - Rule 506(b) ↗ - 4
British Business Bank
How to conduct due diligence on investors ↗