Why Pre-Seed is the Hardest (and most exciting) Company Building Stage

Preface

This is the fifth in a series of ten letters I’m writing to the next generation of founders in Ohio.

I’m writing these letters because Ohio has the talent, grit, and values to become a Startup State, but only if more people choose to build. And not just dream about it, but take the first step.

These letters are about building something from nothing. About taking an idea that lives only in your head and turning it into something tangible — a product, a company, a movement. About the audacity to say: I’m going to create something that didn’t exist before, and in doing so, I’m going to change the future.

If you’ve ever thought maybe I could start something of my own, this series is for you.

In today’s letter, I want to discuss the stage that makes or breaks almost every founder: the pre-seed stage.

“If we all worked on the assumption that what is accepted as true is really true, there would be little hope of advance.” — Orville Wright

The Moment We’re In

Every startup starts at zero: no customers, no product, and no revenue. Often, no team. Just an idea, a founder, and maybe a co-founder crazy enough to join.

That moment — the very beginning — is what we now call the pre-seed stage. It’s the hardest stage of all. And it’s also the most exciting.

Why is it the hardest? Because nothing exists yet. You have no momentum, no proof, no traction. Investors will tell you to “come back later.” Customers will look at you sideways. Even your friends and family will wonder if you’re delusional.

Why is it the most exciting? Because you are free. You can move fast. You can experiment without pressure. You can define what your company will be before the world tells you what it should be.

Pre-seed is the crucible. The fire that shapes founders.

Why This Matters to Me

I’ve lived through pre-seed more than once.

At Kano, we were just a few people in a small room in London, asking: How can we make the making and coding of a computer feel as fun and simple as building Legos? Most people thought it was absurd. But in that fragile moment, we made a leap, and eventually shipped millions of computer kits worldwide.

At Supersocial, it was the same. In 2020, Roblox was dismissed as a “kids’ game.” I believed it was the future of online social play. We rapidly built a leading and respected studio on the platform — but those first months were pure grind, fueled by conviction.

I know what it feels like to wake up at pre-seed with nothing but belief. I know what it feels like when you wonder if you’re crazy. And I know how exhilarating it is when you see the first spark catch fire.

That’s why I want to demystify this stage for you.

The Truth About Pre-Seed

Here’s what pre-seed actually looks like:

You will feel invisible. Most people won’t care about your idea. They won’t see what you see. That’s normal.

You will feel under-resourced. You’ll never have enough money, time, or help. You’ll learn to do more with less.

You will doubt yourself daily. Conviction will be your primary fuel in the beginning. Hold on to it.

You will move fast. There are no fixed plans, and little expectation. Use that freedom.

You will change constantly. What you start building may not be what you end up building. Adaptability is a critical survival mechanism.

Pre-seed is about survival and rapid experimentation, less about being polished. It’s about proving — to yourself, your team, and eventually the world — that there is something here worth pursuing.

The Gap in Ohio

Ohio is one of the hardest places in America to raise a pre-seed round.

While the state is the 7th largest economy in the U.S., in 2024, we captured just 0.54% of national venture funding. That’s near the bottom of state rankings. The result is that too many Ohioans never take the leap because they don’t see enough people doing it. Too many believe you need to be in Silicon Valley to start. Too many think you need permission.

And for those who do start, finding the first check — the true pre-seed capital — is brutally hard. Rev1, JumpStart, CincyTech, North Coast Ventures, Ohio Angel Collective, and others have been lifelines, but their firepower is modest compared to the need. Many (potentially) great ideas die before they get a chance to live. Enduring founders can be found across Ohio, for sure, but even they need some very early support.

This is the gap Ohio must close if we want to become a Startup State.

Embracing Pre-Seed

The world is shifting — fast.

AI, genomics, and robotics are transforming healthcare. Nuclear, renewables, and grid-scale tech are reinventing energy. Simulation and AI tutors are reshaping education. Robots and advanced materials are revolutionizing manufacturing and logistics.

These are the foundations of the next chapter for advancing our civilization, and the companies that will lead them are being started right now — by people with nothing more than conviction, courage, and a vision.

The good news is that building has never been more affordable. You can prototype at the speed of AI. You can reach early customers with a minimal budget. You can raise funds from investors anywhere.

But here in Ohio, we need more founders to take that leap — and more investors to step up with the first checks.

A Call to First-Time Founders

If you’re wondering whether to start, the answer is: yes.
Because it’s worth it, not because it’s easy.

Pre-seed will test you. You’ll feel invisible. You’ll hear “no” more times than you can count. You’ll question yourself. But it is also the most exhilarating stage of building. It’s where you create something from nothing. It’s where you watch the first spark of your idea catch fire.

And you don’t need permission. You don’t need perfect credentials. You don’t need it all figured out. What you need is urgency, conviction, and the willingness to take the first step.

Ohio as a Startup State

Imagine an Ohio where pre-seed is a fertile ground for new ventures and new founders. Where students at Ohio State launch companies from dorm rooms. Where engineers in Dayton leave defense contractors to start ventures that help shape America’s national security. Where logistics specialists in Cincinnati spin out supply chain platforms. And where Cleveland becomes a national hub for AI-native healthcare startups.

Imagine thousands of first-time founders across Ohio taking the leap and having the community, support, and capital to keep going.

That’s what Ohio could look like as a Startup State.

A Final Note

Pre-seed is the hardest stage. It’s also the most exciting. It’s the stage where founders are made, where conviction is tested, and where courage is cemented. And it’s the stage Ohio needs more people to embrace.

The companies that will shape our future are being born right now — and you can be among the founders who will build them.

If this sparks something in you, don’t let it fade. Join the conversation. Get inspired, stay connected, and surround yourself with others choosing to build the future right here in Ohio.

We came to build.
Yon

(Missed the previous letters? Read them here)