What you bring to the table matters
Investors in the pre-seed and seed stages don’t just bet on an idea—they bet on evidence. The more evidence you have (a validated problem, early customers, a working product), the
better terms you can negotiate and the higher the investment amount you can realistically secure.
The exception is experienced serial founders with a proven track record in the field—they can afford to pitch earlier because their credibility compensates for some of the evidence. For most teams, however, the rule is:
the further you get before your first meeting with an investor, the better.
“
The ideal is to get as far as possible without investment. This will put you in a much better position in the future,” says Radim Kocourek, managing partner at JIC Ventures.
Alternative Sources of Early-Stage Funding
Before turning to venture capital,
it’s worth exploring grants and public programs—among those available in the Czech Republic are the TAČR, OP TAK, and CzechInvest programs. Their advantage is simple: they don’t dilute your equity.
Founders’ own capital plays a similar role. “
It’s also good when founders invest their own capital into the startup. For investors, it’s proof that they truly believe in the project,” adds Kocourek.
A
combination of your own capital and grants can extend your runway enough so that you enter the first investment round from a position of strength, not necessity.
What to watch out for: bridge investments
If you decide to raise funds too early and only secure a small investment, you risk getting
stuck between stages—with a product that isn’t yet ready for a full-fledged investment round, but without the funds to get there.
The solution is often a bridge investment, but this signals to investors that the original plan wasn’t fully executed. Avoiding this scenario is easier than getting out of it.
When is the right time?
It makes sense to consider an investment when you have
clear answers to these questions:
- Do you have a validated business model and demonstrable market interest?
- Do you know exactly how much capital you need and what you’ll use it for?
- What stage are you in—and which funding round do you want to enter without losing your majority stake too soon?
- Are all co-founders aligned on the long-term direction, including a potential exit?
That last point is key. Venture funds have a limited lifespan and expect to eventually
monetize their stake – by selling their share or the entire company. “
Founders should anticipate this and agree that it’s okay. Otherwise, it can be quite paralyzing for them,” warns Kocourek.
