Launching a startup is exhilarating, but raising that first capital can be daunting. This guide is your all-in-one playbook for DIY fundraising at the pre-seed and seed stages, tailored for solo founders and small teams in the UK (and secondarily the US). We’ll cover every step, - from getting investor-ready with solid plans and pitch materials, to finding the right investors, to converting pitches into actual investments - all in the context of today’s AI-driven startup era. Short, actionable sections and checklists will help you raise early-stage capital methodically and avoid common pitfalls. Let’s dive in!
Before you knock on any investor’s door (or inbox), prepare your startup inside-out . Early-stage investors today expect more than a cool idea, they want evidence of a credible plan, even at pre-seed. “Investor-ready” means you have clearly articulated your venture’s vision, strategy, and execution plan. Key preparatory steps include:
Clear Business Plan & Strategy: Articulate your business model, target market, go-to-market strategy, and milestones. This doesn’t mean a 50-page old-school business plan, but you do need the fundamentals figured out. Many founders use a short business plan or extended executive summary that covers the problem, solution, market opportunity, business model, and growth plan. Modern AI tools can help draft these; for example, LettsGroup’s AI VentureFactory platform can auto-generate first drafts of key documents - from your first full business plan with financial forecasts to go-to-market campaigns - tailored to your startup. You’ll need to refine any AI-generated content, but such tools jump start the process, ensuring you don’t overlook crucial pieces.
Solid Financial Projections: Prepare 3-5 year financial projections (even if very high-level for pre-seed). Investors know forecasts are guesses, but the exercise forces you to think through revenue streams, pricing, costs, and unit economics. Be ready to discuss your cash burn and how much runway (months of operation) the raise will give you. For pre-seed startups, plan for 12–18 months of runway with the amount you raise, at least enough to hit your next major milestones. Use simple models (spreadsheets or tools) focusing on key assumptions rather than false precision. Make sure your ask (raise amount) aligns with the plan - e.g. raising £250k to £500k to build an MVP and acquire first users, or £1M to reach certain revenue targets, depending on your stage.
Market Sizing & Research: Conduct a TAM/SAM/SOM analysis (Total Addressable Market, etc.) to show the market potential. Investors want to know your startup could eventually tap a large market if successful. Use credible sources or bottom-up logic to estimate this. Also prepare a competitive analysis : identify key competitors or alternative solutions your target customers use today. Be honest and show you understand the landscape. Highlight what differentiates you - e.g. a unique technology, business model or insight that others lack. If you have any early traction (like pilot users, LOIs, or even a waitlist or prototype usage), plan how to present these as validation. LettsGroup's AI VentureFactory provides AI outputs for all of the above tailored specifically to your business.
Pitch Deck: Arguably your most important tool, the pitch deck is a concise slideshow that tells your story in 10-15 slides. Ensure it covers the essential components investors expect: company overview, problem, solution, market opportunity, business model, traction/validation, go-to-market strategy, competition, team, financials, and the fundraising “ask” (how much you’re raising and what for). Each section should be brief and punchy:
Problem: What pain point are you solving? For whom exactly (early adopter)? Use a relatable narrative or data to make it concrete.
Solution: Your product/service and how it uniquely solves the problem. Include your UVP (Unique Value Proposition) – what sets you apart.
Market: How big and growing? Include market size estimates and any trends (e.g. AI boom in your sector). Show you know your niche and competitors.
Business Model: How you plan to make money (pricing, revenue model) and who pays. If B2B, outline your pricing; if B2C, perhaps your user growth to monetisation plan.
Traction: Any proof points so far – users, revenue, pilots, partnerships, or even product milestones (MVP done, etc.). Early adopters or letters of intent strengthen your case.
Team: Highlight the founders and key team or advisors. Why are you the team to bet on? Mention relevant experience or domain expertise.
Financials & Ask: Provide a snapshot of your financial projections or key metrics (e.g. Monthly Burn, revenue if any, growth KPIs) and state how much you are raising, in what instrument (equity or SAFE/note), and broadly what the funds will be used for (e.g. product development, key hires, marketing) over the next ~18 months.
Keep the design clean and visual - use charts or graphics where possible instead of dense text. Remember, investors may skim your deck in under 4 minutes total, so make those minutes count: clear, compelling, and focused on selling the vision.
Demo or Prototype: If you have a product demo, prototype, or MVP, have it ready. A quick demo (even within meetings) can be powerful. For digital startups, a live website or app preview builds credibility. No MVP yet? Consider at least a clickable mock-up or design prototype to visualise the idea. In the AI era, expectations even at pre-seed are higher and many investors want to see some working proof-of-concept or technical validation if possible.
Data Room Prep: Savvy founders prepare a basic data room early. This can be as basic as a folder (Google Drive, Dropbox, etc.) with key documents an investor might request for due diligence. For pre-seed, it might include your detailed financial model, a longer business plan or product roadmap, any existing customer testimonials or pilot results, incorporation documents, IP info (patents filed?), and team resumes. Having this ready to share on request shows professionalism. LettsGroup's AI VentureFactory's core apps include a new Equity and Investor Management system they have started rolling out.
Tools & Resources: To streamline preparation, leverage modern platforms. For example, LettsGroup’s AI-native venture building as software provides a structured 7-stage, 49-step roadmap (the Innov@te framework) covering everything from idea validation to planning to fundraising prep. It generates draft outputs for each step (like an early adopter customer profile, marketing plan, or even defining your first prototype and building you first website) and guide you through investor readiness systematically. Even outside that platform, identify your own stack: e.g. use Jot or Google Docs to develop and compile your plans, Canva or PowerPoint for your deck (many free pitch deck templates exist, including those by Sequoia or YC), and financial modelling templates (or software) for projections. Services like SeedLegals (UK) or Gust (US) offer templates for equity offerings, cap tables, and even automate parts of the fundraising paperwork, which is useful for first-timers.
The goal is to present like a pro even if you’re a newbie: well-organised, thorough, and oriented toward growth.
Over the next few weeks we will publish 8 other sections of our Guide to DIY Fundraising for Tech and Digital Startups at LettsGroup's blog including:
Part 2 - coming nerxt week:Â "Valuing Your Startup: Pre-Seed and Seed Valuation Basics".
Get the fundraising process right and raising money is possible - get it wrong, or follow too many shortcuts and you will regret it. As a startup founder, your most scarce resource is your time. Don't waste it fundraising the wrong way.
Join some of today's hottest startups building faster with LettsGroup's AI Venture Factory - go to Letts.Group .
