How much seed funding should a Pakistan startup raise and how is valuation decided?

We are preparing a seed round for an e-commerce brand. How do founders usually decide raise size versus dilution? What do local angels expect for pre-money valuation at pre-revenue or early revenue stage?

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Zubair Hadir 3 months ago

Raise enough for 18–24 months of planned burn, not a round number that sounds impressive.

How to size the round
1. List milestones that unlock the next raise (revenue, users, gross margin)
2. Cost those milestones honestly (payroll, ads, inventory, contingency)
3. Add buffer — Pakistan cost inflation and delayed collections are real

Valuation basics
Early valuation is negotiation + comparable deals, not a spreadsheet formula. Pre-revenue or thin revenue usually means higher dilution. Stronger traction, cleaner books, and a clear go-to-market story support a better pre-money.

Dilution rule of thumb
If one round costs you more than ~20–25% without transforming the business, revisit scope. Prefer a smaller, milestone-tied raise over over-raising and overspending.

Document use of funds line by line. Investors ask that first.

Related: seed funding amount, startup valuation Pakistan, dilution, pre-money valuation

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