AI & SaaS Drove Pre-Seed—$104M Raised, New Global Hotspots Emerge

Pre-Seed Funding: Market Sizing, New Hotspots, Sector Trends, & Investor Behavior—June 2025

Every founder knows the adrenaline rush—and anxiety—of the Pre-Seed chase: pitching, iterating, and hoping for that “yes.” Last month’s deal data gives a clear window into how much founders are raising, which cities are breaking onto the scene, what industries are drawing the most cash, and who’s leading the investment charge. Here’s the pulse founders need to navigate the current early-stage climate.

The State of Pre-Seed: How Much Are Startups Raising?

June’s Pre-Seed market remained energetic: 183 rounds closed, deploying just under $104M—a robust sign for founders in the earliest stage. Most rounds centered squarely at $500K (median), with an average nudging slightly higher ($568K) thanks to a handful of whopper rounds (the biggest cracked $12M). Over half of all Pre-Seed deals sat between $500K–$1M—solidifying the half-million dollar ask as the expected bar. But don’t rule out the upside: nearly a third of startups banked $1M or more, signaling that significant checks remain within reach for teams with strong traction or capital-intensive milestones.

On Pre-Seed semantics: Nearly 90% of rounds were true first-money-in, while roughly 11% labeled as “Pre-Seed” were actually follow-ons—a reminder that stage names are flexible, often more about founder/investor agreement than a rigid definition.

Not Just SF: New Hotspots and Bigger Rounds Abroad

San Francisco remains king (38–41 deals, depending on who’s counting), but new cities flashed their Pre-Seed credentials. London and New York posted strong, steady volumes, but the most remarkable story is the spread of big checks in smaller tech centers:

• Cambridge, UK: Sky-high average round ($5.3M, 2 deals), led by Sortera Bio’s blockbuster biotech raise.
• Denver, USA: $3M average across its two deals.
• Dubai, Milan, Munich, Toronto: All saw multiple rounds, each averaging $1M or more.
• Zurich stole headlines with a single $12M round—proof that big belief (and capital) can pop up anywhere.

For founders, this means the early-stage game is still global. While volume is anchored in major hubs, “destination” funding can now happen in any city showing breakout innovation or strong investor networks.

Sectors: AI Ubiquity, Software Strength, and Big Bets on Deep Tech

AI continues to eat the Pre-Seed world: 79 deals, $50M+ deployed—often paired with SaaS, FinTech, or specialized B2B tools. If your product enhances automation, workflow efficiency, or data-driven insights (especially for businesses), you’re speaking VCs’ language.

• SaaS, Software, and IT: Consistent high volume, signaling broad appetite for scalable, capital-efficient platforms.
• FinTech/Funding Platforms: Good funding velocity and size—especially for those simplifying thorny problems (pay-by-bank, fraud, cross-border).
• BioTech, Life Sciences, Robotics, Deep Tech: Fewer rounds, but routinely attracting $2M+ checks. Founders in capital-intensive or scientific domains have a compelling window for early outsized investment.

Meanwhile, sectors like Clean Energy, Apparel, Consumer, and niche B2C plays are (for now) “Quieter Zones,” with scattered single-deal activity and smaller overall allocations.

The Money: Who’s Investing and How

Solo rounds rule (around two-thirds), making for simpler, faster closes. The usual suspects—Y Combinator (72+ deals), FasterCapital, and Fuel Ventures—continue to top the activity charts. Syndicates do gather for bigger rounds: landmark checks ($5–$12M) are almost always supported by coalitions of VCs and angels, with European and sector-specialist funds anchoring several of the month’s marquee deals.

But don’t let big names spook you—plenty of Pre-Seed rounds land with local or niche players, solo angels, or emerging micro-VCs focused on a small number of high-conviction bets.

What Pre-Seed Startups Actually Look Like

B2B SaaS dominates, with AI everywhere. Winning Pre-Seed teams are building tools that automate, streamline, or unlock new value for businesses—with pronounced adoption of workflow automation, predictive analytics, compliance/fraud solutions, or verticalized data platforms. Software for developers and next-gen productivity apps are especially in favor. Bio and deep tech teams need to bring the science and the story, but big rounds are on the table.

And remember: A minority of Pre-Seed deals are “repeat” raises for companies with past capital—a point founders should clarify in narratives and investor discussions alike.

TL;DR Bullets

• 183 Pre-Seed rounds closed, nearly $104M raised; 53% of deals between $500K–$1M, but nearly 1 in 3 over $1M.
• True first rounds remain standard (~89%), but 1 in 10 “Pre-Seed” raises are layered follow-ons.
• SF, London, New York: volume hubs. But global cities like Cambridge (UK), Denver, Dubai, Milan, Zurich saw large rounds—global thinking is now essential.
• AI, SaaS, and software are top funding magnets; FinTech, BioTech, and deep tech score big checks when they hit.
• Solo investor rounds (2/3rds) are common, led by Y Combinator and peers; the biggest checks come from VC syndicates—European funds especially visible in large rounds.
• Success recipe: B2B SaaS with an AI heart, clear automation/efficiency play, and founder clarity on stage/funding history.
• Action for founders: Anchor your raise between $500K–$1M, but build a case for more if you’re solving a capital-intensive or “hot” problem. Stage and geography are flexible but clarity is vital.