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Onion theory of Risk: Pre-seed Stage 🌰

Updated over 5 months ago

The Onion was the inspiration for Vai's logo:
Fundraising is like “peeling the onion”: each milestone removes a layer of risk.
By addressing key risks at every stage, Startups can present a clearer, more compelling case to investors.

Fundraising is all about de-risking your business. As a Startup evolves, each stage brings unique challenges, and addressing the specific risks at each phase is crucial for reaching milestones and securing the right investment to fuel continued growth.

Concept Risk (Pre-Seed Stage)

At this stage, you're peeling off the outermost layer of risk by proving that the problem you're solving is real and that your solution is viable.

  • Problem-Solution Fit: Validate the problem and the proposed solution.

  • Customer Discovery: Gather feedback from potential users.

  • Prototype Development: Build a basic prototype to show feasibility.

External Risk (Ongoing Considerations at All Stages)

Throughout the journey, you must remain aware of external factors that could impact your business.

  • Regulatory Compliance: Stay compliant with laws and regulations.

  • Market Adaptability: Be flexible in responding to market shifts.

  • Economic Factors: Mitigate risks tied to economic conditions.


By understanding the specific risks that need to be addressed at each stage, you can systematically peel away layers of uncertainty, demonstrating to investors that your Startup is progressing toward success. Vai’s platform guides you through this process, helping you showcase how you’ve mitigated risks at your current stage and what milestones you aim to achieve next.

Discover the inherent risks at each Seed round:

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