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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. | | Blu Dot surpasses 2,000% ROAS with self-serve CTV ads | | Home furniture brand Blu Dot blew up on CTV with help from Roku Ads Manager. Here’s how: | After a test campaign reached 211,000 households and achieved 1,010% ROAS, the brand went all in to promote its annual sales event. It removed age and income constraints to expand reach and shifted budget to custom audiences and retargeting, where intent was strongest. | The results speak for themselves. As Blu Dot increased their investment by 10x, ROAS jumped to 2,308% and more page-view conversions surpassed 50,000. | “For CTV campaigns, Roku has been a top performer,” said Claire Folkestad, Paid Media Strategist, Blu Dot. “Comping to our other platforms, we have seen really strong ROAS… and highly efficient CPMs, lower than any other CTV partner we've worked with.” | Using Roku Ads Manager, the campaign moved from a pilot to a permanent performance engine for the brand. | Learn More | |
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| 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 If you’re growing so fast that you think the cap is already outdated, skip to the next round.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. | | Have you made these mistakes? | | | SOC 2 Ready in 14 days. Three sessions from you. | | Enterprise buyers will not put your product near their customer data without a SOC 2 report. Sprinto gets you audit ready in 14 days, across three working sessions. AI agents do the collecting, you approve. Your auditor signs off. | Book a Demo and get $1,000 off |
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| | Onwards and Upwards, | | Liam Gill |
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