What fintechs need to know about pre-seed financing (tips from an investor)

As a founder, you may reach a point when you need funding from external investors. You could be relying on loans from friends or family, or you could be digging into your savings to support your vision and pay you staff. If that sounds like you, it could be time to apply for pre-seed financing.

However, to maximise your chances of securing funding, your startup will need the right conditions in place. And you’ll need to ensure that you do everything you can to create a successful pitch.

I’m an investment manager at Tenity and, in this guide, I want to share some of the key things we look for when making investment decisions. I cover:

• What are the main types of pre-seed investment?
• When does it make sense to get pre-seed financing?
• How to secure pre-seed funding: 3 tips
• What you get when you work with Tenity as a pre-seed fintech

‍Are you a fintech looking for pre-seed funding? Reach out to us at Tenity. 

What are the main types of pre-seed investment?

If you’re a startup at pre-seed stage, you’ll likely be running your startup with your own personal finances or with support from your friends and family. In the earliest days of your startup, this is a common and natural choice.

However, it’s not the most sustainable option. These private funds won’t last forever—even if you’re a successful entrepreneur who has exited before. So, if you’re serious about growth, you’ll need external support. 

Where can you get pre-seed financing? There are typically six avenues:

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1. Angel investors. Angel investment is an increasingly common way for promising startups to secure funding. These days, it comes in a variety of forms. 

• For instance, startups may work with established advisors who may become angels down the line. This can be a useful option for startups because it means that the angel already knows the company by the time they come to invest. Plus, the startups won’t just get investment but mentorship too. 
• Angel networks are an alternative way that these investments are managed. They typically take a syndicated form, sometimes leveraging digital platforms to bring angels together to invest in startups. This may take a horizontal approach, or it might involve a VC taking the lead and bringing a community of angels together to support that investment. 

2. Crowdfunding. While equity crowdfunding had its peak a few years ago, it remains a significant way for startups to attract investment through non-traditional means. More than that, though, crowdfunding is a powerful tool for marketing your product and brand. So, as well as bringing in investment, you’ll create public interest too.

3. Pre-seed venture capital funds. VC funds are more formal and institutional approaches to investment, compared to angel networks and crowdfunding platforms. As a result, they typically look for more validated products and startups to invest in—and these funds want to see other VCs around the table, not just angels.
   
   
4. Accelerators. Accelerators are programmes, like the ones we run at Tenity, that support startups at early funding stages with advice, mentorship, training, and investment. They’re particularly useful for startups because they bring together a network of mentors, private investors, VC contacts, as well as relevant stakeholders (such as potential customers) who can support startup growth in the future. 
   
   This means that, even if the grants or funds that come with the accelerator are of a small ticket size, these programmes present great opportunities for further equity. For instance, at Tenity, we a minimum of €50,000 via a convertible loan agreement to all of our programmes’ participants, but we also end our accelerators with a Demo Day where startups can pitch to other investors. There is also a chance to invest further once the startup is part of our ecosystem.

5. Government grants: Government grants can be great to apply to if your startup is focused on innovation, technology, and research. These grants are typically non-dilutive, meaning you don’t have to give up equity in your company to access them. For example, the European Union’s Horizon Europe program provides funding for research and innovation, while regional development agencies often offer grants to stimulate local entrepreneurship.
   

6. Corporate investors. Finally, corporate investors typically come further down the line. They usually want to see a well-validated company, meaning that opportunities here are scarce for the earliest-stage startups. They also typically focus on investing in startups that complement their service offering. For example, telecommunications CVCs like to invest in startups in that industry. Having said that, an increasing number of corporate investors have specific CVCs in house to allocate funding to earlier stage companies. 

As you can see, there are many different types of funding opportunities out there for pre-seed startups. But now what you need to know is how to secure that funding. 

When does it make sense to get pre-seed financing?

The term "pre-seed" encompasses a wide range of startups that have not yet reached the seed funding stage. At one end of the spectrum are newly established businesses that might be in the early days of incorporation, perhaps without even a pitch deck or a fully formed business model.

On the other end are startups that have made significant progress, such as developing a minimum viable product (MVP) or even demonstrating early traction through initial users, revenue, or partnerships. Pre-seed startups share a common goal of laying the groundwork for growth, but their needs and readiness for external investment can vary greatly depending on their stage of development and progress.

In today’s investment landscape, this distinction is crucial. Investors have become more cautious, carefully scrutinizing opportunities to ensure a strong likelihood of returns. They are increasingly selective, often prioritizing startups that have already demonstrated tangible progress, early traction, or a clear path to scalability. This shift in investor behaviour means that the youngest startups may find it harder to secure funding. Without a proven track record or substantial market validation, these fledgling businesses must work even harder to build trust, highlight their potential, and stand out in a competitive funding environment.

At Tenity, most pre-seed companies approach us when they’ve developed a minimum viable product (MVP) and are ready to transform it into a market-ready, sellable product. Taking this next step—validating the product and launching it into the market—requires significant resources. From travel and marketing to operational costs, securing funding becomes essential to drive this critical phase of growth.

An MVP or a pitch-deck alone is not enough for you to go out and apply for funding. In my experience, you’ll also need:

‍A well-rounded team with a balanced skill set is a critical factor that both angel investors and institutional investors prioritize when evaluating a startup. They focus on the strength and composition of the founding team, as it serves as a key indicator of the company’s potential for success. While the specifics of employee contracts are generally not a primary concern at this stage, investors will assess whether all essential skills and roles—such as leadership, technical expertise, product development, and business acumen—are adequately represented within the team.

For instance, a CTO plays a vital role in providing a level of independence during the early stages of product development. By taking charge of the technical aspects, the CTO allows the CEO to focus on the business strategy, fundraising and sales. This division of responsibilities helps optimise decision-making and ensures that technical development progresses efficiently, without delays. Additionally, a strong CTO can help minimize costs by providing the necessary set of skills to run the development process independently of expensive third parties. 

It is also essential that your team possesses relevant expertise directly aligned with the development of the product. For example, in the case of a fintech startup, having team members with a solid background in finance is crucial to ensure the product meets industry standards and addresses the specific needs of the market. This expertise not only strengthens the team’s credibility but also enhances the product’s potential for success. Moreover, a team with relevant experience often brings a valuable network that can be leveraged for partnerships, introductions to potential investors, and market insights, all of which can significantly accelerate growth and open doors to new opportunities.

‍A comprehensive business plan with a clearly defined market opportunity is essential when seeking venture capital investment. Investors are typically looking for startups that have the potential to scale and ultimately achieve a multi-billion-dollar valuation. This assumption drives the evaluation process, and to secure their investment, your company must demonstrate a clear pathway to that level of success.

To gain investor confidence, you must present a well-defined market entry strategy. This includes a thorough analysis of the market landscape, identifying your target audience, and understanding where your startup fits within the competitive space. A key component of this strategy is establishing a strong moat, the unique competitive advantage that differentiates your business from others and ensures long-term sustainability & edge.

Equally important is articulating your unique selling proposition (USP). Investors need a clear understanding of the unique value your product brings to the market, the specific problems it addresses, and the reasons why it is positioned to succeed. Beyond the product itself, crafting a compelling narrative that resonates with investors is crucial. This narrative should weave together your market opportunity, competitive advantage, and growth potential, positioning your startup as a promising candidate for long-term investment.

‍Providing evidence of product validation is crucial at every stage of the startup journey, not just at the pre-seed stage. Investors will look for tangible proof that your product is solving a real problem in the market and that there is demand for it. This evidence can take various forms, including quantitative metrics such as sales figures, user growth, or retention rates. Additionally, qualitative data—such as customer interviews, user feedback, and testimonials—can provide valuable insights into how your product is perceived by your target audience and the impact it has on solving their pain points.

Additionally, leveraging key performance indicators (KPIs) such as customer acquisition cost (CAC), lifetime value (LTV), and conversion rates provides concrete evidence of traction and market validation. However, it’s not enough to just collect and present these metrics; they need to be woven into a coherent, strategic narrative that highlights how these data points connect to your overarching business goals, your product’s unique value proposition, and its growth potential.

A well-organized repository of validation material demonstrates the value of your product, while the ability to communicate it within a structured, data-driven story reflects your professionalism and strategic thinking. This combination builds investor confidence by showing that you not only understand your product’s performance but can also articulate its trajectory within the market context.

But remember, remain transparent! Save everyone’s time. 

By ensuring these three key elements are in place, you will significantly increase your chances of successfully securing investment.

How to secure pre-seed investment: three tips

Of course, the above ideas are not enough by themselves for you to secure pre-seeding financing. There are prerequisites or must-haves, but they won’t guarantee investment all by themselves. 

Instead, in my experience, if you want to give yourself the best chance of securing funding, the following strategies are a good idea to pursue:

1. Craft a compelling narrative about your company. Startup founders are often so invested in the specific problems they’re solving that they forget that investors themselves usually won’t immediately understand what it is they do. This is an issue, because the time that a venture capital firm or investor actually spends on your pitch deck is minimal. We’re talking less than 10 minutes. 

That’s why you need to build a narrative that will actually attract their attention. This should include market analysis and key details of your product development, of course. But you should remember that angels and investors are investing in people, not a product first and foremost. As such, your narrative needs to leverage your personal experience in your domain to justify your entry into the market.

‍2. Creating and managing a data room is essential for storing and managing critical resources, including product documentation, market analysis, and other key materials. As previously mentioned, validating your product with data is a fundamental step, but it’s equally important to maintain a structured and efficient process for managing this data.

To optimize this process, consolidate all relevant information—such as market research, sales performance metrics, customer feedback, product roadmaps, and decision-making documentation—into a centralized repository. This data should be organized in a way that allows for easy access and retrieval. Additionally, include other strategic resources, such as lists of potential venture capital firms or investors, key industry reports, and competitor analysis, to provide a comprehensive overview of your startup’s current position and future trajectory.

Having a single, well-organized digital space for this data not only ensures efficient internal operations but also signals professionalism and domain expertise to potential investors. It demonstrates that you are meticulous in your approach, focused on building a scalable and well-informed business, and prepared to engage with investors in a thoughtful and strategic manner. This level of organization can significantly enhance your credibility and increase investor confidence in your ability to manage and grow the business.

When you will close your first term sheet, having all of this necessary documents at hand, will tremendously speed the process. 

3. Leverage your network strategically to create a sense of “FOMO” and gain validation from other investors. “FOMO” is a powerful psychological tool when attracting investor interest. To capture real attention, your startup must be positioned as an exclusive, high-potential opportunity that investors don’t want to miss out on.

Practically speaking, this can be achieved by actively building and leveraging a strong network while positioning the founders as thought leaders within their industry. Investors seek founders who are not only experts in their domain but also influential figures within their ecosystem. Establishing yourself as a person of influence signals that you are a worthwhile investment and that your startup is well-positioned for growth.

Moreover, investors are constantly looking for social proof and validation from their peers. At Tenity, for example, some of the best investment opportunities we encounter are pre-validated through strong referrals and peer endorsement. A founder who is respected within their industry—and recognized by the investor’s own network—adds significant credibility to the investment opportunity.

This is why I emphasize the importance of creating visibility and targeting the right audience to establish legitimacy. Building a relevant, engaged community within your industry not only amplifies your presence but also fosters the type of external validation that is key to attracting investors and securing funding.

What you get when you work with Tenity as a pre-seed fintech

At Tenity, we operate as both an early-stage venture capital firm and an accelerator with a specialized focus on the financial and insurance industry. Established in 2015 as an initiative of SIX, the Swiss Stock Exchange, we initially built a fintech community to enable corporates to tap into emerging innovations within their sector of predilection.

Today, we are a fully-fledged VC firm, supported by solid international financial institutions. We leverage our in-house accelerator programs and expansive network to drive the growth of our portfolio companies. 

1. You’ll get the investment you need to make your startup viable

At Tenity, while we work as both a VC and an accelerator, you’ll need to participate in one of our programmes in order to access venture capital from us. 

Typically, in our accelerator programs, we provide promising early-stage startups with an investment ticket of at least €50,000 and up to €300,000. This funding is designed to support pre-seed startups in consolidating their pitch decks, refining their business models, and developing a viable product.

In the case of larger initial investments, we prefer to participate as co-investors in a well-structured seed round. This approach allows us to strategically align with other investors who share our vision and bring complementary expertise to the table. By joining an existing round, we not only contribute capital but also leverage our extensive network and in-house accelerator programs to provide ongoing support and drive sustained operational growth for the startup. 

Our involvement extends beyond financial backing—we work closely with founders to enhance product development, refine go-to-market strategies, and ensure that the company has the resources and connections needed to scale successfully. This collaborative approach helps de-risk the investment and creates a solid foundation for long-term success.

All of our accelerators are different, but we run two main types of programmes:

• We run three accelerators of our own across our global hubs, including Switzerland, Singapore, and Estonia. For instance, you can find details of how to apply for our next Singapore cohort here: Tenity Singapore Fin/Tech Accelerator Batch 9.
  
  
• We run programmes specifically designed for corporate partners—such as UBS, Ripple, Julius Baer, Generali, and Franklin Templeton. One example of this type of programme is our digital health accelerator for Digital Health Center Bülach.

These are fantastic opportunities for relevant startups. Bear in mind that most of these programmes require you to have a team in place already (or at least a co-founder), and ideally an MVP to showcase.

2. You’ll receive the support you need to grow, right now and into the future

Obviously, an accelerator is not just about receiving investment. It’s also about developing the team, mindset, and product you need to ensure growth and success into the future. 

Through our accelerators, you’ll get access to domain experts that can support your growth. These can be a mix of industry mentors, VCs, experienced founders, and corporates. They can all share their expertise on building products, finding product-market fit, expanding your team, or managing the stress of growth. 

We aim to design programs that go beyond simply telling you what we think you need to know. Instead, we focus on understanding the challenges you’re facing so we can provide tailored solutions to help you grow in a way that works best for you. Throughout the program, we do our best to connect you with relevant experts and stakeholders who can further support your journey. Even after our program concludes, we stay closely connected with our portfolio companies, actively supporting and contributing to their ongoing growth.

So, even beyond the four-month programme itself, you’ll have the support of our network in optimizing your company. 

3. You’ll be connected with a global ecosystem of experts

At Tenity, we grew out of Zurich’s financial ecosystem. Since 2015, we’ve spread much further around the world. 

Today, we have hubs in Switzerland, Spain, Singapore, Estonia, and Turkey. These are places where we run programmes, build communities, and help you find investments.

While we have a global presence, then, our emphasis is always local. We work hard to build connections with local banks, mentors, corporate partners, and VCs. In whichever region is relevant to you, you can benefit from these connections, to better leverage the power of the financial community and to solve your problems with the help of authentic experts. 

Of course, this global network gives you the platform from which to grow internationally too. In future, if you want to break into a new market, for instance, you’ll have the support to do exactly that. 

Apply for an accelerator programme to access pre-seed financing with Tenity 

Are you a fintech startup looking for pre-seed financing? At Tenity, we can help. We run programmes across the world to help startups in the financial sector to access startup funding, get the expertise they need, and grow. 

Interested in learning more? Reach out to us.