Will Mason

How Do Angel Investors Value Pre-Seed Startups? At the pre-seed stage, startups often have no revenue and minimal traction — which makes traditional valuation methods like EBITDA multiples useless. Instead, angel investors rely on a mix of early-stage valuation methodologies such as: 📊 Berkus Method – assigns value to elements like the team, prototype, market size, and strategic relationships. ⚖️ Scorecard Method – compares the startup against averages from similar deals in the region, adjusting for strengths and weaknesses. 💰 Venture Capital Method – estimates the exit value and works backward, applying expected ROI multiples. 🔮 Risk Factor Summation – starts from a baseline valuation and adjusts up or down based on 12 common risk factors (management, competition, legislation, etc.). The truth is, at this stage, investors look beyond numbers. While valuation methodologies help frame the deal, more than the money, investors also evaluate factors such as: 👥 The founding team – their skills, resilience, and ability to execute 💡 The problem being solved – is it significant, urgent, and scalable? 🚀 The proposed solution – how unique, innovative, and defensible is it? 📈 Market potential – is there room for exponential growth? 🛠️ Early validation signals – customer interviews, letters of intent, prototypes, or pilot interest. Pre-seed investing is often described as “betting on the jockey, not just the horse.” Angels know that the business will pivot, but the right team can adapt, learn, and grow. At this stage, valuations are more art than science, but structured approaches ensure fairness for both founders and investors. At CYBAN, we guide investors and founders through these methods to align expectations and build trust from day one. #AngelInvesting #StartupValuation #PreSeed #CYBAN

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Good news for founders: These VC firms just reloaded their checkbooks 🔴 Lisbon, Portugal-based Ventures . eu has launched the first close of a €30M fund to back early-stage startups across Portugal and Europe, focusing on deep tech, sustainability, digital transformation, and globally ambitious ventures. 🔴 Ahmedabad-based Kettleborough VC launched an Rs 80 crore fund to back inception-stage, deeply experienced founders focused on financial services, full-stack commerce solutions, and vertical SaaS (especially agentic AI). 🔴 Auckland-based Icehouse Ventures has launched a $30m Seed Fund IV to back early-stage New Zealand startups, with a focus on companies led by experienced or repeat Kiwi founders building global businesses. 🔴 Santa Monica, CA-based Mantis VC closed a $100M fund to back B2B startups, including those in cybersecurity AI, and fintech. 🔴 London-based Evantic Capital has closed a $355M fund to back B2B companies at the Series B and growth stages, with a cross-Atlantic focus on Europe and the US. 🔴 Midwest, USA-based Velveteen Ventures launched a new fund to back seed and Series A companies in healthcare, climate, consumer, and community sectors. The fund will invest $500,000 to $4 million per company, targeting 15-20 companies. 🔴 San Francisco-based GPx (no official website available) is raising a $500M fund to back emerging VC funds targeting pre-seed and seed-stage startups, and to partner with those managers to lead later-stage investments in their breakout companies. 🔴 Cambridge, MA-based Vie Ventures launched an up to $200m debut fund to invest in life sciences, with a focus on advancing next-generation therapies for autoimmune diseases. 🔴 San Francisco, CA‑based Cambrian closed a $25M Fund II to back pre‑seed and seed‑stage fintech startups across areas such as payments, insurtech, vertical SaaS, proptech, and fintech. 🔴 India-based Sameer Brij Verma Fund closed a $150M early‑stage fund to back technology startups across India, focusing on founders building scalable, innovative businesses. #NewFundAlert #VentureCapital #StartupFunding

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