SaaS for Pre-Seed Startups: Showcase Progress & Connect with True Early-Stage Investors

Published on 06/05/2025Marketing Opportunities

Reddit Post Analysis:

  • Post Title: "What's the Deal with Accelerators and VCs Soliciting Pre-Seed Applicants but Asking for Traction? (I Won't Promote)"
  • Content Summary: The user is frustrated that VCs and accelerators claim to invest at the "earliest stage" and even say they fund teams without a product, yet still ask for traction when pre-seed founders apply.
  • Core Problem Highlighted: There's a clear disconnect between what some early-stage VCs/accelerators say they look for and what they actually require. Specifically, they often demand "traction" even at the pre-seed stage, which confuses and potentially wastes the time of founders.

Niche Market & SaaS Opportunity Analysis:

  1. Niche Identification:

    • Primary Niche: Pre-seed and idea-stage startup founders.
    • Sub-Niche: Founders who struggle to show traditional traction because they are pre-product, pre-revenue, or have very early, non-traditional signals of progress. They are frustrated by the mixed messages from the investment community.
  2. SaaS Opportunity:

    • Opportunity: Create a platform that helps pre-seed founders understand, document, and present "alternative traction" or "pre-traction validation" to investors who claim to invest at the earliest stages. The platform could also help identify investors who genuinely align with truly early-stage, pre-traction investments.
    • Value Proposition:
      • For Founders:
        • Clarify what "earliest stage" investors really look for beyond traditional traction.
        • Provide tools to systematically document progress like user research, problem validation, prototype feedback, Letters of Intent (LOIs), community engagement, team expertise, and market sizing.
        • Help build a compelling narrative around these early signals.
        • Curated list/database of VCs, angels, and accelerators verified to invest pre-traction/pre-product, along with insights into what they consider valid early signals.
        • Save founders time and effort by targeting the right investors.
      • For Investors (Potentially):
        • Access to a filtered pool of pre-seed startups with well-documented early validation efforts, even if not traditional traction.
  3. Product Form:

    • Web-based SaaS platform.
    • Key Features:
      • Pre-Traction Dashboard: A guided framework for founders to input and track metrics like:
        • Number of customer interviews conducted & key insights.
        • Survey results (e.g., problem validation scores).
        • Prototype feedback scores/qualitative summaries.
        • Number of LOIs secured or strong expressions of interest.
        • Community size & engagement metrics (e.g., Discord, newsletter).
        • Team milestones (e.g., key hires, advisory board formation).
        • Market research summaries.
      • Narrative Builder: Tools or templates to help founders weave these data points into a compelling story for their pitch.
      • Investor CRM & Matchmaking:
        • A curated, searchable database of VCs, angels, and accelerators with detailed profiles on their actual pre-seed investment criteria, past pre-traction investments, and preferred "early signals."
        • Potentially a "match score" based on the founder's documented pre-traction and the investor's stated preferences.
      • Reporting Tool: Generate a concise "Pre-Traction Report" or an enhanced one-pager that founders can share with potential investors.
      • Educational Resources: Content on how to approach pre-seed fundraising, what different types of "traction" mean, and how to validate ideas effectively.
  4. Expected Revenue Model (Monetization):

    • Subscription for Founders (Primary):
      • Freemium Tier: Basic documentation tools, limited access to investor database.
      • Standard Tier (e.g., $29-$79/month): Full documentation suite, full investor database access, basic reporting.
      • Premium Tier (e.g., $99-$199/month): All standard features plus advanced analytics, narrative building assistance, premium report templates, potentially warm intro facilitation (if ethical and manageable).
    • Partnerships with Accelerators (Secondary): Offer the platform as a tool for their cohorts to prepare for fundraising.
    • Data Insights (Long-term): Aggregated, anonymized data on pre-traction metrics could be valuable for market research, but privacy and ethics are paramount.
    • Success Fee (More complex, consider carefully): A percentage of funds raised if a direct, platform-facilitated introduction leads to investment. This is harder to track and enforce.

Summary Output:

The post highlights a common frustration for pre-seed founders: VCs and accelerators claiming to invest at the 'earliest stage' but still demanding traction. A SaaS platform could address this by helping founders document and present 'pre-traction' progress (e.g., user research, prototype feedback, LOIs, community building efforts). The product could also feature a curated database of VCs/angels known for genuinely investing pre-product/pre-traction, along with tools to build a compelling narrative around the problem, team, and early validation signals. This would be a web-based platform, primarily monetized through a tiered subscription model for founders, potentially with premium features for advanced support or investor matching. Expected revenue could range from low thousands per month in early stages (with a few hundred users) to tens or hundreds of thousands per month as the user base and feature value grow.

Origin Reddit Post

r/startups

What Is With Accelerators and VCs Soliciting Pre-Seed Applicants But Asking for Traction? (I Will Not Promote)

Posted by u/notllmchatbot06/05/2025
Why do VCs/accelerators tell pre-seed applicants things like "We invest in the earliest stage" "No traction required" "We have funded teams without a product, at just 2 weeks old"

Top Comments

u/Westernleaning
Beyond the fact that there are lots of zombie funds that aren’t making investments right now; No traction doesn’t mean no momentum. Also, tbh, so many VC’s/investors have been burned by goi
u/greenpepperoni
There are a lot of VCs whose fund size forces them to be seed investors but their risk profile is not built for early stage investing.
u/notllmchatbot
LOL!
u/CountyTime4933
Indian VCs and investors are a joke.
u/BayesCrusader
Thank you for posting this. I thought I was going insane. I get to the 4th meeting with a senior partner, and suddenly the product I have people testing is 'just an idea' until there is mon
u/Shichroron
They are building top of funnel. But it’s not just potential investments. They also want to get themselves educated. Some disclose that upfront (“we don’t invest in pre-product) and it’s you
u/notllmchatbot
Yeah, I totally see that. Outside of the U.S, it's not uncommon to hear of VCs in the lower double digit AUMs. I even came across one recently in the single digit range. They are not seed/ear
u/b00tstrapp3r
My favorite is when they reach out to me (not the other way around) because, "we are doing something really interesting to them." Then they find out we only have $15k MRR - which to my team
u/L_Outsider
An interesting theory I've heard from people within the industry is that a lot of traditional VCs are now operating like private equity firms. My opinion is that this trickles down to early s
u/Ill-Quote-4383
Cash is expensive right now and there's a ton of instability. I'm hearing in my industry a Series C level company is basically the minimum. It is what it is. Accelerators are a bit kinder on
u/WeCanApp
What we found is that once we built a product, the genuine conversations happened with investors. Joining a startup accelerator added credibility. Pitching an idea, is very risky. As you take
u/Evelyn_Staples
I’ve noticed that too. The definition of “traction” keeps shifting
u/notllmchatbot
I totally agree and it's a very sensible approach. Then these accelerators and VCs should just be upfront about it. "No traction required, but applicants should have a working MVP to demons
u/grady-teske
VCs say that stuff for marketing but when decision time comes they're comparing you against 500 other applications. Even at pre-seed level some traction beats zero traction.
u/Code-Ready
VCs nowadays behave more like PE. They want to tie ROI on their dollar, and startup must have de-risked tech, market, etc. They come in as growth capital. Pre-seed as a VC category is pretty
u/Think_Description_84
It's an easy out for a deal in uncertain times. They will do those deals when the markets are supportive. The markets are not supportive anymore. Basically all these policies and global uncer
u/angelvsworld
We have a lot of VCs in our network who invest in pre seed without traction, but we do only post revenue. We don't even consider pre-seed, only sometimes follow them until they get to the nex
u/Secret_Mud_2401
I have product ready but need funds to launch
u/reddit_user_100
Minimum for what? 10+M ARR for a pre-seed company would be insane
u/drewc717
Yeah. It’s a lead funnel. They want a peek/datamine of as many deals as possible and hopefully find some needles in the hay.
u/ddeeppiixx
To get the YC stamp.. No joke, I've seen people putting YCXX as a middle name in LinkedIn..
u/Tim-Sylvester
Everytime there's a downturn in VC, they move their goalposts to post-revenue, but without moving their "investment stage" statement to match. Originally Series A was pre-revenue, then afte
u/bobmailer
"We invest in the earliest stage (when a second time founder is building something new)" "No traction required (if one our partners knows you from their past)" "We have funded teams without
u/WeCanApp
Until a VC gives an action item, you have no deal. Investors have specific things they are looking for, and if you happen to be that specific thing. They will invest without traction. In the

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