How Many Startups Get Funded Without a Product? [With Stats]

Startups are unpredictable. Some launch with a flashy product and don’t get funded. Others raise hundreds of thousands—sometimes millions—without building a single feature. If you’re wondering how many startups get funded without a product, and what separates them from those that don’t, this guide will answer that in great detail. We’ll explore real-world stats and what they mean for founders, investors, and startup teams.

1. 29% of startups begin without a developed product when they first raise funding

Raising funds without a product sounds risky. But nearly a third of startups manage to do it. This number tells us one important thing: having a product is not a requirement to begin conversations with investors. However, you’ll need something else to make up for it.

Why Do Investors Fund Startups Without a Product?

The key reason is belief. Investors bet on potential—on your vision, your clarity of thought, your understanding of the problem, and most importantly, your team’s ability to execute.

They know that product-building is a journey. If they trust that your team can build the right thing, they’ll often write a check before anything tangible exists.

What Should You Focus On If You Don’t Have a Product?

• A solid problem statement—investors want to see that you truly understand the issue you’re solving.
• A clear target audience—knowing who your customer is shows you’ve done the homework.
• A sharp value proposition—explain why your approach is different and better.
• A roadmap—outline what you’ll build first and why.

Tactical Steps to Raise Without a Product

1. Build a lean pitch deck focused on problem, market, and team.
2. Mock up the product—even Figma prototypes can demonstrate vision.
3. Highlight early traction—pilot interviews, waitlists, or landing page signups.
4. Assemble a strong founding team—investors back people, not products.

The takeaway? You don’t need a finished product, but you do need conviction, clarity, and evidence of momentum.

2. Over 50% of angel investors have funded startups at idea stage with no product

Angel investors are often your first real believers. More than half of them are willing to invest when you just have an idea, even before you’ve built a single thing.

Why Angels Are More Flexible Than VCs

Angel investors typically operate with personal capital. This gives them more freedom to back early ideas that excite them. They often relate personally to the problem you’re solving or see parallels from their own careers.

Angels also enjoy the high-risk, high-reward profile of early-stage investing. Unlike venture capitalists, they’re not bound by rigid investment criteria.

How to Attract Angel Funding Without a Product

• Tell a powerful origin story—what inspired you? Why now?
• Present your background—why are you the right person to solve this?
• Use storytelling, not spreadsheets—angel rounds rely more on narrative than metrics.
• Pitch the vision, not the MVP—help them see the future you’re building.

Tips for Building Angel Relationships

• Attend startup meetups, pitch events, and demo days.
• Use warm introductions—get referred by people they trust.
• Offer regular updates—even if they don’t invest now, they may later.

Angels invest in people. Show them you’re serious, capable, and committed, and they may write that first check even before your first line of code.

3. Only 10–15% of startups raising VC at pre-seed have an MVP at the time of funding

Contrary to popular belief, venture capital firms sometimes fund pre-product startups too—though it’s less common. Only 10–15% have an MVP when they raise their first VC-backed pre-seed round.

Why Would VCs Fund a Startup Without a Product?

In a word: optionality. VCs want to secure a stake early when the upside is greatest. If the idea and team are strong enough, they’ll jump in.

Some VCs are also focused on specific sectors or problems. If your idea aligns with their thesis, they may want in before competitors discover you.

How to Increase Your Odds

• Study the VC’s investment thesis—make sure your idea aligns with their focus.
• Prove the market is ready—show market timing and pain points with research.
• Show customer interest—collect waitlist signups, interview quotes, or commitments.
• Clarify use of funds—how will this funding help you reach product validation?

What VCs Expect Without a Product

• A strong, well-balanced team with relevant experience.
• A deep understanding of the market.
• A clear plan for getting to MVP and initial traction.
• Some sign of momentum—team progress, partnerships, or audience growth.

Getting VC money without a product is harder than with angel investors. But if you position your story right, it’s still doable.

4. Pre-seed rounds typically range from $100K to $500K, even for startups with no product

Funding amounts at the pre-seed stage can vary widely. But even if you haven’t built anything yet, raising $100K–$500K is possible.

Why This Range Is Common

Pre-seed funds are often designed to help you go from idea to MVP. Investors know you’ll need money to build the first version of the product, hire your first team members, and conduct user testing.

The round size reflects how much risk they’re willing to take on you at this early stage—without seeing actual customer usage.

What Investors Expect in Return

• Equity, usually via a SAFE or convertible note.
• A compelling founding team that can execute.
• A roadmap to MVP and customer validation.
• Regular updates and communication.

How to Decide How Much to Raise

• Calculate your true needs—team, development, and runway for 12–18 months.
• Factor in buffer time—things always take longer than you think.
• Avoid raising too much too soon—higher valuation now could hurt you later.

Having no product doesn’t mean you can’t raise a solid pre-seed round. Just be sure to explain exactly how the money will move the business forward.

5. Y Combinator has funded over 70% of startups before product launch

Y Combinator is one of the most influential accelerators in the world. And they’ve backed thousands of startups before they had a product.

Why YC Bets on Pre-Product Founders

They’re not investing in what you’ve built. They’re investing in what you can build. YC loves strong founders with insight into a real problem and a plan to solve it.

Often, they push teams to build faster once accepted. They believe in moving quickly to product-market fit—and offer resources to help you get there.

What You Need to Get Into YC Without a Product

• Clarity about the problem and why it matters.
• Evidence of demand—maybe from interviews, signups, or pain point analysis.
• A great founding team, especially with technical capabilities.
• A unique insight that most people don’t see.

Should You Apply Without a Product?

Yes—especially if you have a technical co-founder, a clear idea, and early signs of customer pain. Many YC-backed unicorns started with nothing more than a vision.

6. 38% of founders raise their first round with just a pitch deck

That’s right—no code, no prototype, just a pitch deck. For nearly 4 in 10 startup founders, a pitch deck is all it takes to close their first round.

Why Does a Pitch Deck Matter So Much?

Because it’s not just slides—it’s your story, vision, and business model wrapped into one. When you don’t have a product yet, the pitch deck becomes the face of your startup. It’s what makes investors lean in or walk away.

Your deck shows investors whether you’ve thought things through. It’s not about design tricks. It’s about structure, logic, and clarity.

What Makes a Great Pitch Deck?

Here’s what to focus on:

• Problem: What specific pain are you solving?
• Solution: What’s your approach, and why is it unique?
• Market: How big is the opportunity?
• Team: Why are you the right people to solve this?
• Roadmap: What’s next?

Even at idea stage, you should be able to present all of this with real thought.

Tactical Advice

• Keep it under 12 slides.
• Use simple visuals or mockups, even if rough.
• End with a clear ask—how much money you’re raising and what for.
• Practice your pitch until it flows like a story.

Investors don’t expect a polished product at this point. But they expect clarity. Your pitch deck should show that you’ve done your homework and are ready to take the next step.

7. More than 65% of startup accelerators accept teams without a live product

Startup accelerators are often the first stop for early founders—and most of them don’t require a working product to get in.

Why Accelerators Focus on Teams, Not Just Products

Accelerators know that early-stage ideas evolve fast. What matters more is how quickly the team can learn and build.

A strong team with a deep understanding of a real-world problem is more valuable than a half-baked MVP. That’s why accelerators lean toward founders who are coachable, ambitious, and resilient.

How to Apply Without a Product

• Explain your insight into the market.
• Show what progress you’ve made—interviews, landing pages, demand signals.
• Make your learning loop visible—how you test assumptions and iterate.
• Focus on team dynamics—who you are and how you work together.

Benefits of Getting In Early

• Structured guidance to go from idea to product quickly.
• Early funding ($20K–$150K in many cases).
• Access to mentors, investors, and partners.
• Increased credibility and visibility.

You don’t need a product to get into an accelerator. But you do need to prove that you’re the kind of founder who can build one that matters.

8. Less than 5% of startups get Series A funding without a working product

While pre-seed and seed investors may back your idea, Series A investors play a different game. They want proof. And that usually means a live product, users, and metrics.

Why Series A Is a Different Beast

By the time you’re raising Series A, it’s no longer just about potential. Investors want to see product-market fit, user growth, and revenue potential.

Less than 5% of startups make it to this stage without a working product—and most of those are outliers, often with experienced founders or massive pre-launch traction.

What Series A Investors Expect

• A working product with real users.
• Data showing growth (DAUs, retention, engagement).
• A repeatable go-to-market strategy.
• A strong leadership team and early hires.

What to Do If You’re Not Ready

• Focus on nailing your MVP before you even think of Series A.
• Track and share user feedback and usage metrics from day one.
• Build lean but smart—invest in the right features, not all of them.
• Don’t rush into a Series A just because others are doing it. It can kill your momentum.

This stage is about proving the business works—not just the idea. And without a product, that’s nearly impossible.

9. Investor interest in “pre-product” startups has grown 35% in the last decade

A decade ago, pre-product investing was a niche game. Today, it’s part of mainstream startup culture. Why? Because the barriers to building have dropped, and the value of early bets has grown.

Why the Shift?

• Faster tools: Founders can validate ideas with no-code or mockups.
• Remote work: Investors are more willing to fund globally.
• More capital: Pre-seed and micro-funds have exploded.
• Bigger exits: Investing early means higher returns.

What This Means for You

The market is friendlier than ever to idea-stage founders. You don’t have to prove everything before you ask for funding. You just need to prove that you’re the one to bet on.

How to Leverage This Trend

• Focus on storytelling: Investors love founders who can paint a clear vision.
• Be early: Pre-product doesn’t mean unprepared—do your research and customer discovery.
• Build relationships early: Many checks are written before formal rounds even begin.

This stat shows one thing clearly: there’s never been a better time to raise without a product—if you do it right.

10. In 2022, 42% of all pre-seed funding rounds were closed without a product

Almost half of all pre-seed rounds were raised without a product. That’s a huge signal. It means you’re not alone—and that many investors are comfortable betting on early ideas.

What Does This Tell Us?

• Product isn’t the only signal of progress.
• A strong pitch, clear roadmap, and credible team can carry you.
• Founders are getting smarter about how to validate before they build.

What Do These Founders Have in Common?

• A clear problem and target market.
• A team that can execute fast once funded.
• Evidence of demand (signups, interviews, etc.).
• The ability to learn and pivot based on feedback.

Should You Raise Pre-Product?

Yes—if you’ve validated the problem, know your market, and have a plan to build. Fundraising pre-product lets you move faster and avoid building something nobody wants.

It’s not about being perfect—it’s about being ready.

11. Less than 20% of pre-product funded startups reach product-market fit

Getting funded without a product might feel like a win—but the real test comes after. And the numbers don’t lie: fewer than 1 in 5 pre-product startups actually find product-market fit.

Why Is Product-Market Fit So Elusive?

Because it’s more than building something functional. Product-market fit is when customers love what you’ve built, use it often, and are willing to pay for it (if applicable).

Many startups build the wrong product. Or they build the right product for the wrong audience. Or they solve a problem that’s not painful enough.

Common Pitfalls After Funding

• Rushing into development without refining the problem.
• Building features instead of solutions—more code doesn’t mean more value.
• Ignoring customer feedback—early users are your compass.
• Scaling too early—you need traction before you pour fuel on the fire.

How to Improve Your Odds

• Talk to users constantly. Feedback is more valuable than funding.
• Ship fast and small. Launching a tiny version quickly beats perfecting the wrong thing.
• Track the right metrics: retention, usage frequency, NPS.
• Be ruthless about pivots. If it’s not working, change it fast.

Getting funding is step one. Finding product-market fit is the real game. Treat it like your only goal until you’ve nailed it.

12. 82% of idea-stage startups that get funding have at least one experienced founder

Experience matters. Over 8 in 10 startups that get funding before having a product have someone on the team who’s “been there, done that.”

Why Investors Value Experience So Highly

It lowers risk. An experienced founder has likely made mistakes before and knows what to avoid. They understand startup dynamics—fundraising, product development, hiring, and customer discovery.

They also come with networks: potential hires, advisors, or even first customers.

What If You’re a First-Time Founder?

Don’t worry—it’s not a dealbreaker. But you need to show that you’ve done the homework:

• Have you worked in the industry before?
• Can you demonstrate deep insight into the problem?
• Have you surrounded yourself with experienced mentors?

Tactical Moves for New Founders

• Team up with someone who’s done it before.
• Show traction in other ways—signups, partnerships, engagement.
• Build a public track record—write, speak, or share insights in your niche.

Your job is to make investors feel confident you’ll figure it out—even if it’s your first time. Experience helps, but hunger and clarity can close the gap.

13. Less than 10% of solo founders with no product get funded

Going solo is tough. And when you don’t have a product, it gets even tougher. Less than 1 in 10 solo founders without a product raise capital successfully.

Why the Odds Are Against Solo Founders

Startups are hard. Doing it alone is harder. Investors worry about:

• Burnout risk—one person can only do so much.
• Lack of diversity in skills—business and tech need different minds.
• Speed of execution—a team can move faster than one.

Without a product, you’re asking investors to back both a solo journey and an unproven idea. That’s a big ask.

How to Beat the Odds

• Build a strong advisory board—borrow experience and credibility.
• Show amazing execution—build mockups, get interviews, launch a waitlist.
• Be transparent about your roadmap—share how and when you’ll bring others on board.
• Prove commitment—go full-time, invest your own capital, show traction.

Being a solo founder isn’t a curse. But you’ll need to prove you can carry the weight—and attract the right help at the right time.

14. Pitch deck quality influences 60% of decisions for pre-product investments

Before you build anything, your pitch deck is your startup. And 60% of investor decisions at the pre-product stage hinge on how effective that deck is.

What Makes a Deck “High Quality”?

It’s not about fancy graphics. It’s about clarity, structure, and storytelling.

A great pitch deck should:

• Make the problem feel urgent and real.
• Present the solution in a simple, compelling way.
• Show that the market is large and growing.
• Highlight why your team can win.

Common Mistakes to Avoid

• Too much jargon or buzzwords.
• Slides overloaded with text.
• Vague claims without backup.
• Ignoring key questions like “Why now?” or “Why you?”

Practical Tips for Creating a Winning Deck

• Use one idea per slide—investors flip quickly.
• Add customer quotes or research to support the problem.
• Use simple mockups to show your vision.
• End with your funding ask and milestones.

You won’t get many chances to pitch. Make your deck so clear and compelling that it opens doors by itself.

15. The average valuation for idea-stage startups without a product is $3M–$5M

Even without a product, founders often raise at valuations between $3M and $5M. That might sound high—but it reflects the value of potential.

Why These Valuations Make Sense

Investors know they’re buying early. In return, they expect a bigger piece of upside later. If your vision is big and your team strong, that early-stage equity is worth something.

Valuations at this stage are based more on:

• Team strength
• Market size
• Clarity of problem
• Investor competition

How to Think About Your Valuation

Don’t just pick a number. Ask:

• What’s the minimum capital you need for the next 12–18 months?
• How much dilution are you comfortable with?
• What will this valuation signal to future investors?

Most early-stage rounds are done on SAFEs or convertible notes, which delay pricing. But investors still do mental math—make sure your expectations match the market.

Tactical Advice

• Don’t fixate on valuation alone. The right investors are more valuable than a higher cap.
• Explain how this money gets you to the next milestone—MVP, traction, revenue.
• Avoid raising too much too early—it can hurt your next round if you haven’t hit key goals.

Valuation is a reflection of belief. Give investors a reason to believe, and the numbers will follow.

16. Venture funds allocate about 5–7% of their capital to pre-product startups

When it comes to risk, venture capital funds manage it strategically. Only about 5% to 7% of their overall capital is typically reserved for startups that haven’t launched a product yet.

Why the Slice Is Small—But Still Exists

VCs manage portfolios, not just individual bets. The majority of their capital goes to startups with traction. But a small slice is intentionally placed on high-risk, high-reward bets—like pre-product startups.

These investments are long shots, but they can pay off big. Think of companies like Airbnb or Dropbox—some of their earliest backers took a chance on nothing more than a deck and a dream.

How This Affects Founders Like You

• It’s a competitive slice. If you’re pre-product, you’re fighting for a small portion of capital.
• You need to stand out hard—team, market insight, or vision.
• Timing matters—some funds reserve their pre-product capital for just a few founders each year.

How to Win That 5–7%

• Find funds that explicitly back pre-product ideas.
• Look for partners who’ve backed idea-stage startups before.
• Pitch the long-term potential—make it clear how early belief can lead to huge returns.

Just because the slice is small doesn’t mean you shouldn’t go after it. But you need to be laser-focused and make your case airtight.

17. Only 1 in 40 startups without a product gets institutional VC funding

Institutional VC firms are far more conservative with their earliest-stage bets. If you don’t have a product, the odds are around 2.5%—that’s just 1 in 40.

Why the Odds Are So Slim

Institutional VCs have fiduciary responsibilities. They need to show their investors (LPs) that their bets are calculated. Backing a startup without a product often feels too speculative—unless there’s something else extraordinary on the table.

It could be a rockstar team, a massive untapped market, or a founder with multiple exits. Without those, it’s tough to get a yes.

What You Can Do About It

• Focus on smaller, more flexible funds first—like micro-VCs or angel syndicates.
• Build your traction story without the product—through interviews, signups, and partnerships.
• Use grants or accelerators to bridge the gap—so you’re not reliant on institutional money at this stage.

Tactical Alternatives to Institutional VC

• Angel networks and high-net-worth individuals.
• Government or innovation grants.
• Revenue-based financing (for service-based MVPs).
• Crowdfunding platforms.

Don’t take rejection from institutional VCs personally. Most startups aren’t ready for them this early—and that’s completely okay.

18. Founders with prior exits are 4x more likely to get funded pre-product

If you’ve already built and sold a company, investors take you much more seriously. In fact, you’re four times more likely to get funded before having a product.

Why Prior Success Matters So Much

• It shows you’ve navigated the startup rollercoaster before.
• It proves you can execute and deliver value.
• It makes it easier for investors to trust your judgment.

Investors also know that successful founders often have stronger networks, better instincts, and faster execution skills.

How First-Time Founders Can Compensate

You don’t need a previous exit to raise. But you’ll need to compensate with:

• Relentless preparation—understand your market better than anyone.
• Demonstrated hustle—get traction with minimal resources.
• A strong network—even if you borrow credibility from advisors.

Tactical Steps

• Highlight your wins—even if they’re not exits. User growth? Launches? Media?
• Show your learnings—demonstrate that you think like someone who’s failed and grown.
• Bring on an advisor who has had a prior exit—they lend credibility to your pitch.

An exit is a shortcut to funding—but not a requirement. You can still win investors with clarity, insight, and drive.

19. Over 70% of VC firms require at least an MVP for consideration beyond pre-seed

Pre-seed is the most forgiving stage. But once you try to raise a proper seed round or Series A, the majority of VCs will expect an MVP.

Why the MVP Becomes a Must-Have

An MVP (minimum viable product) proves that you can:

• Build something real.
• Attract users (even if small in number).
• Learn and iterate based on usage.

It shifts your story from “this could work” to “this is starting to work.”

What Counts as an MVP?

It doesn’t have to be polished. But it must be functional. A real user should be able to:

• Sign up or use your product.
• Experience value (even in a limited way).
• Give you feedback.

This could be a no-code tool, a web app, a simple marketplace, or even a WhatsApp-based flow.

What to Do If You’re Not There Yet

• Start building—even if it’s scrappy.
• Focus on core functionality, not design.
• Use tools like Glide, Bubble, or Webflow to test concepts fast.
• Build manually behind the scenes (the “Wizard of Oz” MVP).

Your goal isn’t to impress. It’s to test and learn. And that’s exactly what VCs want to see as you grow.

20. Crowdfunding campaigns succeed 22% of the time without a product demo

Crowdfunding can be a powerful tool for early-stage validation—but without a product demo, success rates drop sharply. Only 22% of campaigns hit their goals without one.

Why Demos Matter in Crowdfunding

Backers are not just investing. They’re buying into a promise. And if they can’t see how it works, that promise feels hollow.

Video demos, interactive prototypes, or animations significantly increase trust. They help potential backers understand your product, your vision, and your progress.

What to Do If You Don’t Have a Demo

• Create a product concept video—walk through your solution visually.
• Use simple animations or even sketch walkthroughs.
• Show behind-the-scenes footage of your process or design.

You don’t need a working prototype to demonstrate vision. But you do need to help people imagine the end result.

Tips for Crowdfunding Without a Product

• Lean heavily on the story—why this product, and why now?
• Feature yourself—people back people more than ideas.
• Focus your ask—what exactly are backers funding?
• Use social proof—press coverage, early signups, testimonials.

Crowdfunding can be a great bridge to funding and validation. But without a clear demo or at least a visual explanation, you’re fighting uphill.

21. 10–12% of startups in top-tier accelerators are accepted without any product

It might seem surprising, but even elite startup accelerators like Techstars, 500 Global, and Y Combinator accept startups before they’ve built a product. About 10–12% of their incoming cohorts consist of founders who are still pre-product.

Why Accelerators Take These Bets

Accelerators know the real value lies in people, not products. In fact, they’d rather work with a high-potential team before anything is built so they can help shape the product alongside them.

This approach allows accelerators to:

• Spot unique insights early.
• Mold direction before it’s locked in.
• Capture more equity at a better valuation.

It’s also part of their mission—to back talented founders at the earliest possible moment.

What You Need to Get In Without a Product

• A problem worth solving, clearly explained.
• Evidence of deep user understanding.
• A strong founding team with the ability to execute quickly.
• A roadmap for building and testing your MVP.

Accelerators want to know that the moment you get in, you’ll hit the ground running. Show that you’re thoughtful, scrappy, and willing to learn.

Tactical Steps

• Conduct and document user discovery interviews.
• Mock up a product flow to show your thinking.
• Share learnings from experiments (even failed ones).
• Build a basic landing page with email capture to test interest.

Getting into a top accelerator without a product is rare—but possible. Focus on being one of the most compelling “people-first” bets in the batch.

22. Pre-product startups with a technical co-founder raise 2.5x more capital

Startups without a product face a credibility gap. Having a technical co-founder often bridges that gap, and not surprisingly, these teams raise about 2.5 times more capital than those without one.

Why a Technical Co-Founder Matters

When investors see a technical co-founder, they see speed, control, and lower burn. It means:

• You can build in-house, quickly.
• You’re not reliant on expensive external development.
• You can iterate faster based on feedback.

It also signals that your team is complete—or close to it. That’s comforting to investors.

What If You’re a Non-Technical Founder?

Don’t panic. You have two paths:

1. Find a technical co-founder by networking, building in public, or through communities like Indie Hackers, YC’s co-founder matching, or Twitter.
2. Partner with a dev agency—but only for MVPs. This is riskier, so position it clearly in your pitch.

Tactical Tips

• Show you can communicate product logic even without writing code.
• Learn to use no-code tools (Bubble, Webflow, Glide) to test quickly.
• Build your product vision visually—use tools like Figma or Canva.
• If you’re still looking for a co-founder, be upfront—and show a plan.

Investors want to know you can build. If you can’t do it yourself, show that you’ve surrounded yourself with people who can.

23. Only 8% of funded startups at idea stage survive beyond 3 years

This one stings. Just 8% of startups funded before building a product are still around three years later. That’s a steep drop-off—and a reality check.

Why Most of Them Don’t Last

• They build the wrong thing.
• They spend money too fast without getting traction.
• They don’t validate before launching.
• They can’t find product-market fit in time.

Money buys time—but not clarity. And if you raise before you’ve tested, the pressure to perform can lead to rushed decisions.

How to Be Among the 8%

• Treat fundraising as a means, not the goal. Your real mission is building something people want.
• Use your early capital with surgical focus—prioritize learning over scaling.
• Track everything—use data to guide decisions, not gut.
• Build feedback loops into your process—stay close to users.

Stay Disciplined, Stay Alive

Three years can feel like a long time in startup world. But it flies by fast when you’re distracted by shiny objects. Stay grounded in solving one problem well. That’s what separates survivors from statistics.

24. Convertible notes are used in 78% of pre-product startup deals

When startups raise money before having a product—or even a valuation—convertible notes are often the tool of choice. Around 78% of these early-stage deals use them.

Why Convertible Notes Make Sense

At this stage, it’s nearly impossible to accurately value a company. You have no users, no revenue, and no data. Convertible notes solve that by:

• Deferring valuation to the next round.
• Letting you raise quickly with simple terms.
• Providing investor upside through discounts and valuation caps.

They’re faster, cheaper, and friendlier to founders.

What Founders Need to Know

• Understand terms like discount, cap, and interest.
• Keep your cap reasonable—most are between $3M and $6M at this stage.
• Use standard templates like Y Combinator’s SAFE or the 500 Startups KISS note.

Tactical Tips

• Avoid negotiating too many investor-specific terms—it gets messy fast.
• Work with a lawyer or mentor to ensure you understand every line.
• Be transparent with future investors—notes convert into equity later, and caps affect ownership.

Raising pre-product? Use a convertible note or SAFE. It’s the cleanest way to raise now and price later.

25. Founders raising without a product take 2x longer to close a round

If you’re raising money without a product, expect it to take time. On average, these rounds take twice as long to close compared to those with a working MVP.

Why It Takes Longer

Investors need more convincing. You don’t have data or usage to point to, so:

• You’ll have more meetings.
• You’ll face more skepticism.
• You’ll need stronger storytelling and follow-up.

It’s not a reflection of your potential—it’s just the reality of early-stage fundraising.

How to Shorten the Timeline

• Start building relationships before you’re fundraising.
• Have clear documentation: deck, vision, milestones, use of funds.
• Build urgency by lining up interest from multiple investors.
• Use social proof—advisors, testimonials, traction, or even branding.

Prepare for a Grind

It’s a longer journey, but not impossible. Set realistic expectations:

• You might pitch 50–100 investors.
• You’ll need persistence and adaptability.
• You’ll need to answer the same questions, better, every time.

Be patient—but also be proactive. Follow up. Track conversations. And celebrate every small win along the way.

26. Startup teams with domain expertise raise 3x more pre-product

When your startup solves a specific problem in a known industry, domain expertise is a serious advantage. In fact, pre-product startups with founders who deeply understand the industry raise about three times more capital than those without that background.

Why Domain Expertise Is a Magnet for Investors

Investors want to back people who “get it.” If you’ve worked in the space before, you:

• Know the customer.
• Understand the workflow or pain point deeply.
• Speak the language of your market.

This builds confidence. Investors don’t have to wonder if you’re guessing—you’ve likely seen the problem up close and are well-positioned to solve it.

Examples of Domain-Led Founding Stories

• A doctor founding a health-tech startup.
• A logistics manager building a supply chain tool.
• A former teacher launching an edtech platform.

These stories resonate because they’re authentic—and rooted in experience.

How to Leverage Your Expertise

• Share specific examples from your past work that led to the startup idea.
• Demonstrate deep knowledge of your customers, not just your competitors.
• Highlight gaps or inefficiencies that only someone on the inside would notice.

What If You Don’t Have Domain Expertise?

• Bring on an advisor who does.
• Interview real users extensively—borrow their wisdom.
• Be transparent about your learning curve, but show your progress fast.

Domain expertise doesn’t guarantee success—but in the pre-product stage, it’s often the difference between a quick “no” and a second meeting.

27. More than 55% of pre-product investments are under $250K

Most early-stage founders aren’t raising millions. In fact, over half of pre-product investments are under $250,000. These rounds are designed to validate the concept and build the first version, not scale.

Why These Smaller Rounds Make Sense

At this stage, the goal is to:

• Validate the problem-solution fit.
• Build a minimum viable product (MVP).
• Gather early user feedback.
• Prove that people care.

Small rounds force discipline. You don’t have room to hire a big team or build unnecessary features. You focus on what matters.

How to Plan Your Ask

• List what you absolutely need to get to MVP.
• Factor in runway—typically 12 to 18 months is ideal.
• Include a small buffer (things will go wrong).
• Avoid over-raising—it could inflate your valuation and hurt future rounds.

What $250K Can Cover

• Initial development (even if part-time).
• Early marketing or customer discovery.
• A small founding team.
• Tools and legal setup.

Use the capital to move fast and learn. Investors want to see what you do with limited resources—it tells them a lot about how you’ll use more later.

28. High-potential markets can increase pre-product funding odds by 40%

Investors don’t just back products—they back big opportunities. If your idea targets a large or fast-growing market, your odds of raising pre-product rise by about 40%.

Why Market Size Matters Early

Even without a product, investors are betting on the future. They ask:

• Is the market big enough to matter?
• Is it growing?
• Is there room for new entrants?

If the answer is yes, they’re more likely to roll the dice—because even small success in a big market can lead to big returns.

How to Show Market Potential

• Use credible sources—Gartner, Statista, IBISWorld, etc.
• Break down the market into TAM, SAM, and SOM.
• Share trends—behavioral shifts, policy changes, or new tech that favors your idea.
• Paint a picture of how your product fits into that future.

Don’t Inflate the Numbers

Investors can spot unrealistic TAMs from a mile away. Be honest, but strategic:

• Show the realistic beachhead market you’re starting with.
• Explain how you’ll expand over time.
• Position your startup as well-timed and well-placed.

Big markets attract attention. Make sure yours is easy to understand—and too big to ignore.

29. Only 3% of non-technical founders raise funds without a product

This one’s harsh—but real. If you’re a non-technical founder and you don’t have a product yet, your chances of raising money are only about 3%.

Why the Odds Are So Low

Investors fear:

• Slow execution.
• High burn from outsourcing development.
• Lack of ownership over the product.

They want to know that the team can build, test, and ship fast. Without technical capabilities, that’s tough to do at speed and scale.

How Non-Technical Founders Can Beat the Odds

• Learn no-code tools and build a prototype yourself.
• Partner early with a technical co-founder.
• Focus on customer validation to show demand.
• Use mockups and workflows to demonstrate product thinking.

Tactical Alternatives

• Build a service version of your product manually.
• Launch a content-led MVP—like a newsletter, blog, or small community.
• Use revenue to fund development (customer-funded MVP).

You don’t need to be a developer—but you do need to show technical thinking. Prove that your idea deserves to be built—and that you can lead the process.

30. Investors cite “vision and team” as the primary reason in 80% of pre-product investments

When there’s no product to assess, investors fall back on two things: your vision and your team. These two factors drive 80% of decisions to invest at the pre-product stage.

What “Vision” Really Means

• Can you clearly explain the problem and your unique solution?
• Do you have a long-term plan—and does it feel possible?
• Are you building something that can scale and make a real impact?

Vision isn’t fluff. It’s your map for the future—and your ability to sell it matters.

What Makes a Team “Investable”

• Complementary skills (e.g., one business, one technical).
• Strong founder-market fit.
• High energy, coachability, and clear roles.
• A bias toward action—you’ve already made progress with little.

How to Communicate Both

• Nail your pitch story. Make it personal and purposeful.
• Showcase past wins—builds trust in your team.
• Walk investors through your roadmap—what happens next, and why?
• Share how you make decisions—show that you think like a founder.

Investors need to feel it. They need to believe that you’re the kind of team that will figure it out, no matter what. That’s what gets checks written at this stage.

Conclusion:

Getting funded without a product is not just possible—it’s happening all the time. But the bar is high. It takes clarity, hustle, and the ability to turn nothing into something.

Use these 30 stats as both a mirror and a roadmap. Understand where you stand, what investors look for, and how to increase your odds.