Startup Fundraising Guide from Investor: Pedigree or Traction, What Raises More?

One of the most common questions early-stage founders ask is: “How much can I realistically raise?” However, the answer isn’t as straightforward. In pre-seed and seed rounds, the spread is massive. Some teams close multi-million-dollar rounds with nothing more than a pitch deck, while others struggle to raise US$100,000 from angel investors.

To bring clarity, investors and accelerators have begun to simplify this question with practical frameworks. Alan Poensgen, a Partner at Antler, shares his startup fundraising guide in this Ability to Raise Cheat Sheet. It’s one such tool, helping founders understand how investor expectations shift based on two factors: founder pedigree and traction.

The Two Dimensions of Pedigree and Traction

At the earliest stage, there’s little data to analyze. Unlike Series A and beyond, where numbers dominate the discussion, seed investors rely heavily on the founder’s background and early traction.

• Founder Pedigree Matters More With Less Traction
  When you’re still at the “idea on paper” stage, investors want to know whether you’ve done something impressive before. A successful founder who scaled or exited a previous startup is seen as lower risk. Similarly, graduates from pedigree universities (like Ivy League schools or WHU) or those with experience at McKinsey, BCG, or Goldman Sachs statistically appear more likely to succeed. While this isn’t always rational, it’s a filter investors use when they face thousands of pitches.

• Traction Beats Pedigree
  If you’ve built a live product and can demonstrate strong demand, your ability to raise grows regardless of background. Founders without the “classic” track record often succeed once they show evidence of real customer adoption or growth. The principle is simple: investors care about execution. Proving you can ship, sell, and scale outweighs any résumé.

Startup Fundraising Guide: How Much Can You Raise?

The cheat sheet breaks it down by stage and founder profile:

• Idea on Paper: US$0-100k for new founders, up to US$2m+ for successful founders with exits.

• First Product Live (no validation yet): US$0-300k for newcomers, US$800k-2m+ for pedigreed or experienced founders.

• Product Live with Demand: US$300k-1.5m for early teams, US$2-5m for those with proven track records.

• Product Live with Medium Demand: US$1-3m for new teams, US$5m+ for founders with exits.

This spread highlights why two teams with similar ideas can raise vastly different amounts: their backgrounds and traction tell different stories.

Practical Considerations

• Valuation follows fundraising. Typically, early rounds assume 15-25% dilution. Raise US$800k, and your valuation will likely land between US$3.2m-US$5.3m.

• LinkedIn can matter more than your pitch deck. At the pre-seed stage, investors often check your profile before they read your deck.

• Exceptions always exist. Copycat models, hardware or biotech startups, or friends-and-family funding all follow different rules.

Final Takeaway for Startup Fundraising Guide

The startup fundraising guide isn’t a strict rulebook, it’s merely directional. But it gives founders clarity on what’s realistic, and what they need to prove to unlock bigger checks. At the end of the day, pedigree may open doors, but traction is what keeps investors at the table.