Investing Writer. Find out more financial-equity.com Economic and Market Trends. Maintaining a Strong Reputation. This analysis helps investors gauge the longevity and scalability of the investment. There are several terms associated with pre-seed funding that startups should be familiar with. Some common terms include equity, convertible notes, valuation, and dilution. Understanding these terms and their implications is crucial for startups as they navigate the pre-seed funding process. Many venture capitalists have had prior investment experience, often as equity research analysts. VC professionals tend to concentrate on a particular industry. A venture capitalist who specializes in healthcare, for example, may have had prior experience as a healthcare industry analyst.