Founders can raise pre-seed or seed funding before they have revenue, a product, or a full-time commitment, although investors will judge the founder, team, and vision closely.
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Cold outreach works better when it responds to an investor's public thinking and makes a specific request instead of sending the entire pitch in the first email.
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Early pitches should explain why the founder, why now, the customer and market opportunity, the path to a large company, and how the founder thinks about competitors and go-to-market.
Summary
Dani Grant and Chelcie Taylor walk through the first fundraise for an AI startup. Taylor explains that pre-seed and seed investors can back companies before revenue, a product, or a founder's departure from a full-time job. Grant describes raising Jam while it was still pre-product and recommends starting investor relationships before formally raising. The discussion covers cold emails, including examples that worked because they connected to an investor's writing and asked for a concrete conversation. In a pitch, engineers should spend less time on technical details and more time explaining why them, why now, the customer, the product direction, and the path from an early idea to a large company. Taylor advises founders to acknowledge competitors, describe their differences, and offer a directional go-to-market plan that can change through testing. The meeting should be conversational, and founders should ask about the investor's process, send the deck afterward, and assess whether they want to work together.
Pre-seed investors can back founders before revenue or a finished product
Chelcie Taylor says founders do not need revenue to raise from every type of VC. Later-stage funds may look for ARR, while pre-seed and seed funds are used to investing in companies that are pre-revenue and sometimes pre-product. At that stage, investors are mainly backing the founder, the team the founder can recruit, and the vision for the company. Dani Grant adds that Jam raised its first round while it was pre-product and while her co-founder still had a job. She says raising was easier when the company was still potential rather than after spending a long time building an unproven product.
Leaving a job is a signal of conviction, but it is not a universal requirement
Taylor says whether a founder must leave a full-time job depends on the fund and company. Some investors will consider someone at a reputable technology company who has built a side project and wants funding to make the leap. Still, because VCs are trying to back companies that can return their funds, leaving a job can signal conviction. Grant describes using an earlier stage to raise before the formal raise, by contacting people for advice about what she was about to build. She says bringing people in early can make them feel part of the company.
Cold outreach gets replies when it creates a warm signal and asks for something specific
Taylor says she reads cold emails because finding deals is part of her job, but messages get answered more often when they follow a warm signal. Her public posts tell founders what topics she is thinking about, and people who respond with a relevant idea and ask for a 15-minute conversation usually get a reply. Grant and Taylor show examples that mention a shared event, connect directly to an investor's article, or ask for feedback on go-to-market and introductions to relevant investors. The request should make clear what the investor will help with. The first email should compel a response, rather than attempt to complete the whole sale.
The first pitch should explain why the founder and why now
Taylor says AI engineers often spend too much of a pitch on technology. Investors still need confidence that the founder can build a strong product, but early-stage investors are also betting on vision. A useful pitch explains the problem, then shows what the founder has seen that makes their approach different. Taylor gives the example of choosing logistics and transportation instead of restaurants for a voice AI agent, perhaps because of workflow integration or data advantages. The investor wants a cohesive explanation of why this particular market and approach could work.
Founders need a story for how an early product could become a large company
Grant says investors repeatedly asked Jam why it was a product rather than a feature, and why it was a company rather than a feature. She understood the question as asking for the path from the current product to a billion-dollar company. Taylor says founders should discuss future revenue potential even when they have no revenue today. Customer interviews, design partners, and evidence about what buyers might pay help make the future less hypothetical. These details give the investor material for thinking about how the company could reach larger revenue milestones.
A good pitch meeting is a focused conversation rather than a long answer to every question
Grant says founders are in the business of giving a good meeting, which means the conversation is focused, bidirectional, and ends with next steps. Taylor advises founders not to respond to every investor question with a ten-minute explanation. A concise answer can state the likely approach and offer to explain more. She gives an example of a founder who said, "I could make up an answer right now for you, but I don't want to do that. I want to be thoughtful." Taylor says this honesty impressed the investment committee because it showed the founder was not inventing beliefs on the spot. Founders should also ask why the VC is asking a question.
Competitor answers should admit competition and explain the company's distinct position
Taylor says a founder who claims to have no competitors usually creates concern. A stronger answer acknowledges existing companies, places them on relevant dimensions, and explains the different space the startup intends to occupy. She uses Clay as an example of a company that distinguished itself from tools such as ZoomInfo by aggregating more data sources. Grant adds that VCs may already have spoken with the competitors, so hiding them can make a founder seem untrustworthy. Founders can use the investor's knowledge by asking why the VC liked or passed on another company in the category.
The deck should support the investor's internal discussion after the meeting
Founders should ask what the VC's process looks like if the investor does not explain the next steps. Taylor recommends having materials ready to send immediately, including a pitch deck that states how much the company is raising and how the capital will be used. Grant says founders usually should not present the deck during the first meeting because slides can push the investor into passive viewing mode. The deck is a brochure for the rest of the investment team, and a short accompanying blurb can help the person in the meeting explain the opportunity internally or forward it to other pre-seed and seed investors.
"What investors are banking on is you as a founder, the team that you can bring around you, the team that you can ultimately recruit, but importantly, the vision that you have for what this company can be."01:47
Who should watch
You are an engineer considering a startup but have never raised a first round and need to know what investors expect before you have revenue or a finished product.
You have a technical company idea and need to turn the technology into a story about the customer, market, founder insight, and future company.
You are preparing investor outreach and want examples of cold emails, guidance for pitch meetings, and a practical way to handle follow-up materials.
