Balancing Risk and Reward in Pre-Seed Deals

The VC Playbook: Investing in Pre-Seed Startups and Deep Tech Innovation

Venture capital has always been a high-risk, high-reward game, but when it comes to pre-seed investments, the stakes are even higher. In this episode of Tech Salescraft, host James Hounslow speaks with Ignacio De Diego, Associate at Cardumen Capital, about the challenges and opportunities in early-stage venture capital, the deep tech landscape, and what truly sets apart the startups that make it from those that don’t.

With pre-seed funding often seen as the equivalent of picking a Premier League team from an academy of nine-year-olds, investing at this stage requires a mix of intuition, deep industry knowledge, and a clear understanding of what makes a tech startup successful. Ignacio shares his journey from being a tech founder to an investment professional, offering a rare inside look at how VCs make decisions, what they look for in founders, and how startups should approach fundraising.

From Tech Founder to Venture Capitalist

Unlike many traditional VCs who enter the industry from finance or consulting backgrounds, Ignacio started as a computer scientist. His early experience co-founding Wastey, an AI-powered nutrition startup, gave him firsthand insight into the challenges of launching and scaling a technology company.

Despite having a compelling business idea—using AI to reduce food waste and improve nutrition—the company didn’t take off. However, this experience helped him understand the grit, resilience, and adaptability needed to be a successful founder.

After moving into the corporate banking sector, working on optimising machine learning infrastructure, Ignacio realised that he needed something more dynamic. His transition into venture capital at Cardumen Capital was driven by his love for both technology and investment, as well as a desire to support founders navigating the same challenges he once faced.

His journey highlights an essential truth about VC careers: there is no single path. A strong technical background, industry expertise, and strategic mindset can be just as valuable as a traditional finance background when evaluating deep tech startups.

What VCs Really Look for in Early-Stage Founders

For pre-seed investors, there are no financials to review. Unlike Series A or later-stage deals, where growth metrics and revenue figures play a significant role, investing at the pre-seed level is all about assessing the founder, market opportunity, and product vision.

According to Ignacio, one of the biggest mistakes VCs make is overcomplicating things for founders. While many investors think their role is to challenge, question, and reshape a startup’s business model, he argues that the best investors often do the opposite: help founders simplify their strategy, focus on execution, and cut through the noise.

A strong tech founder will always have ideas—too many, in fact. The real value of an investor isn’t in adding complexity but rather in helping founders distill their vision into clear, actionable priorities.

Some of the key qualities he looks for in founders include:

• Domain expertise: Do they understand their market better than anyone else?
• Adaptability: Can they pivot when necessary without losing sight of their mission?
• Clarity of thought: Can they communicate their vision clearly and concisely?
• Execution ability: Do they have the discipline to turn ideas into reality?

For startups seeking VC funding, understanding these traits and being able to demonstrate them effectively in pitch meetings can make the difference between securing investment or being overlooked.

The Reality of Pre-Seed Investing: Balancing Risk and Opportunity

Investing at the pre-seed level is often seen as the riskiest form of venture capital, but it also presents the biggest opportunities. With no revenue or proven business model, VC firms rely on alternative data points to evaluate potential investments.

At Cardumen Capital, a deep-tech-focused VC firm, the approach to early-stage investing is heavily informed by the team’s experience in corporate innovation, strategic partnerships, and industry trends. Having a deep understanding of how large enterprises adopt technology allows them to anticipate what startups will gain traction in the long run.

One of the biggest misconceptions founders have about pre-seed funding is that investors expect them to have everything figured out. The reality is quite different.

For Ignacio and his team, the key factors in making a pre-seed investment decision include:

• Technology viability: Can the product actually be built at scale?
• Market demand: Is there a clear go-to-market strategy for early adoption?
• Strategic relevance: Will larger corporations see this as a must-have solution?

He emphasises that founders shouldn’t focus on “perfect” business plans but rather demonstrate a deep understanding of their industry and potential customer base.

2025: A Year for Disciplined Growth in Tech Startups

After a challenging 2024, where many VC firms were focused on helping their portfolio companies survive, 2025 is shaping up to be a year of renewed growth. However, Ignacio warns against over-optimism.

While startup funding is starting to flow again, corporate budgets remain cautious, and growth must be pursued strategically. For founders, this means:

• Focusing on core strengths rather than chasing trends
• Understanding how AI and emerging tech are reshaping industries
• Avoiding false positives—growth that appears promising but isn’t sustainable

His advice to founders is clear: don’t expect 2021-style hyper-growth to return overnight. Instead, focus on sustainable, disciplined expansion.

How Startups Should Approach VC Fundraising and Pre-Seed in 2025

For startups looking to raise venture capital funding, Ignacio shares some key takeaways on how to approach pitching to investors.

One of the biggest red flags for VCs is when founders try to hide weaknesses in their business model. Instead of avoiding tough questions, he advises founders to be transparent about challenges and proactively address potential risks.

Many investors are more inclined to back a startup that openly acknowledges its weaknesses and has a clear plan to overcome them rather than one that presents an overly polished but unrealistic picture.

He also stresses that the pitch deck is only 20-30% of the equation. While a strong deck is important, the real test comes in the investor meeting, where founders need to:

• Articulate their vision and market opportunity
• Demonstrate intellectual honesty and adaptability
• Showcase why their team is uniquely positioned to win

What’s Next for Cardumen Capital?

Looking ahead, Cardumen Capital is set to expand its investment focus, doubling down on deep tech and pre-seed startups while also opening up new geographic opportunities. The firm is growing rapidly, with plans to increase its assets under management (AUM) and further enhance its data-driven approach to investing.

For Ignacio, the future of venture capital isn’t just about finding great startups—it’s about leveraging technology and insights to create a more scalable, efficient investment model.

Final Thoughts

This episode of Tech Salescraft offers an unfiltered look into the world of venture capital, deep tech startups, and pre-seed investing. Whether you’re a founder looking for funding, an aspiring VC, or someone interested in the tech sales and investment ecosystem, Ignacio’s insights provide valuable takeaways for navigating today’s rapidly evolving market.

How This Tech Salescraft Episode Relates to North Starr

At North Starr, we specialise in technology sales recruitment, connecting top talent with some of the most exciting tech startups and established companies in the market. This episode of Tech Salescraft, featuring Ignacio De Diego, Associate at Cardumen Capital, is highly relevant to the world of tech sales jobs, venture capital funding, and the startup ecosystem, all of which directly impact our clients and candidates.

The Link Between Tech Sales and Venture Capital

For any tech sales professional, understanding the venture capital landscape is crucial. The companies we work with—from SaaS startups to cybersecurity firms—are often backed by VC funding, which fuels their go-to-market strategies and sales expansion. Ignacio De Diego shares deep insights into what investors look for in early-stage tech companies, which directly impacts sales hiring strategies and technology sales recruitment agencies like North Starr.

Startups in pre-seed and Series A funding stages need to build strong sales leadership teams to scale efficiently. As technology sales recruiters, we help these companies find the right sales talent, from account executives to pre-sales engineers, ensuring they can meet aggressive growth targets.

Hiring Strategies for VC-Backed Tech Startups

One of the key takeaways from this episode is the importance of hiring the right salespeople at the right time. Ignacio explains how pre-seed venture capital firms assess startups based on their go-to-market strategy, a critical factor in sales success. At North Starr, we work closely with SaaS recruitment agencies, cybersecurity recruiting firms, and FinTech startups to ensure they hire top-tier sales professionals who can execute on these strategies.

As technology sales recruiters, we often see startups struggle with hiring sales talent because they lack experience in structuring sales teams. The discussion in this podcast underscores why having a strong sales hiring strategy for SaaS startups is key to long-term success.

Opportunities in Tech Sales for Job Seekers

For professionals looking to start a career in tech sales, this podcast highlights why the industry is thriving. With increased VC investment, there is a growing demand for tech sales jobs, especially in SaaS, FinTech, and cybersecurity sales roles. As a leading tech sales recruitment agency, we at North Starr help candidates navigate these opportunities, securing roles in some of the best tech sales startups.

The insights from Cardumen Capital reinforce the importance of working in a high-growth, well-funded company. Understanding what makes a great sales leader, how startups secure funding, and how to align with a company’s go-to-market plan can make a huge difference in career progression.

Why Tech Sales Professionals Should Understand VC Trends

For anyone in technology sales jobs, staying informed about venture capital funding trends is critical. Investors like Ignacio De Diego assess startups based on scalability, and one of the biggest factors in that equation is their ability to build a high-performing sales team. Tech sales recruiters like North Starr play a key role in ensuring startups have the right people to drive revenue and secure further investment rounds.

By understanding the stages of venture capital, sales hiring trends, and how investors evaluate startup growth, sales professionals can position themselves better for high-impact roles in VC-backed companies. Whether you are a sales executive, a pre-sales consultant, or an aspiring sales leader, the insights from this podcast can help you align with the best tech sales career opportunities in the market.

At North Starr, we are committed to helping both companies and candidates thrive in the tech sales industry. Whether you’re an employer looking to hire top sales talent or a candidate looking for your next opportunity in SaaS sales, we provide expert tech sales recruitment services to drive success in this rapidly evolving sector.