Written by. The right time to seek pre-seed funding often comes when a startup has a well-defined problem to solve, a viable market to target, and ideally, a minimum viable product (MVP) or prototype. In the early days of the startup, securing pre-seed money can provide the necessary capital to move from concept to initial implementation, helping to demonstrate product-market fit. Waiting too long can mean missed opportunities, while seeking funding too early may make it difficult to attract new investors due to a lack of proof of concept or market validation. More information https://financial-equity.com/investment/invest-in-stocks/can-you-lose-more-than-you-invest-in-stocks-understanding-risk-in-the-stock-market/ Understanding the Market and Competition. Still, despite facing enormous risks, VCs do fork-out millions of dollars to tiny, untested ventures with the hope that they will eventually transform into the next big thing. So, what things prompt VCs to pull out their checkbooks?