# What is Pre-Seed? Definition & Technical Mechanics

> **Source:** [SPIDITS AI Startup & Venture Intelligence Glossary](https://spidits.com/startup-glossary)  
> **Category:** Funding  
> **Canonical Citation:** [https://spidits.com/startup-glossary/pre-seed](https://spidits.com/startup-glossary/pre-seed)

## Definition
Pre-Seed funding is the earliest stage of venture financing, typically occurring before a startup has a fully developed product or proven product-market fit.

## Architectural Mechanics & Deep Dive
Pre-Seed funding is the earliest stage of venture financing, typically occurring before a startup has a fully developed product or proven product-market fit. This capital is often sourced from the founders themselves, friends and family, or specialized pre-seed angel investors. The money is primarily used to build a minimum viable product (MVP), conduct initial market research, and hire core team members. Pre-seed valuations are highly speculative and often structured using convertible securities like SAFE notes or convertible notes to defer establishing a formal valuation.

## Industry Applications & Real-World Use Cases
Building an MVP and conducting initial market research

## Frequently Asked Questions

### Who typically invests in a pre-seed round?
Pre-seed funding is typically sourced from the founders themselves, friends and family, and early-stage angel investors.

### How is pre-seed funding usually structured?
It is typically structured using convertible instruments like SAFE notes or convertible notes to avoid establishing a formal valuation.

## Related Terminology
- [seed-round](https://spidits.com/startup-glossary/seed-round)
- [safe-note](https://spidits.com/startup-glossary/safe-note)
- [convertible-note](https://spidits.com/startup-glossary/convertible-note)

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*From the SPIDITS AI Knowledge Base (300+ terms indexed). Explore full technical definitions: [https://spidits.com/startup-glossary](https://spidits.com/startup-glossary)*