presales

Jared Friedman explains why hard tech and biotech companies face both market and technical risk, and why ambitious ideas can make recruiting, press, and fundraising easier even when building the product is difficult. He shares ways to demonstrate progress before a costly product is ready, including prototypes, simulations, small-scale experiments, presales, letters of intent, and customer contracts. He recommends proving demand and reducing technical risk as early as possible. He also advises founders to break a large fundraising goal into smaller rounds tied to concrete milestones.