Mistakes to avoid

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What Not to Do at Pre-Seed 
Read time 2.0 minutes.

Pre-seed rounds are often a founder’s first real interaction with venture investors. The mistakes you make here can shape (or sink) your fundraising trajectory. Here are the most common pitfalls I see—and how to handle them the right way.

1. LOIs ≠ Customers
A non-binding, unpaid LOI doesn’t mean you’ve closed a customer. Be honest. Instead say: “X, Y, Z have agreed to trial our product, and we expect some will convert into paying customers.” That signals traction without overstating it.

2. Asking for an NDA
Pre-seed investors review thousands of decks every year. Almost none sign NDAs. Don’t make this your hill to die on. Instead, share your deck upfront and be ready with a data room if they ask for details.

3. Moving the SAFE Cap After Closing
Raising your SAFE cap days or weeks after an investor just invested is one of the fastest ways to lose credibility. If you’re growing so fast that you think the cap is already outdated, skip to the next round. Otherwise, run a tight, time-boxed process and close cleanly.

4. Unrealistic Forecasts
Projecting wild revenue with no traction makes you look unserious. Instead, highlight the evidence you do have: why the timing is right, why you’re the right team, and what early signals show demand.

5. Overcomplicated Business Models
If an investor needs a PhD to understand how you make money, you’ve already lost them. Keep it simple. A clear, direct business model builds trust.

6. Claiming “No Competition”
There’s always competition—whether it’s another startup, an incumbent, or the customer doing nothing at all. Saying otherwise shows immaturity. Instead, focus on your edge: your unique insights, your approach, or your execution speed.

7. Talking Too Much
A 20-minute monologue with no room for questions is painful. Keep your opening to 2–3 minutes, then invite dialogue. The best pitches feel like conversations, not lectures.

8. Fear of Idea Theft
Ideas aren’t what win. Execution does. Few (if any) startups fail because someone “stole” their idea. Be open and transparent. Confidence in your ability to out-execute is far more impressive than secrecy.

Onwards and Upwards,

Liam Gill