# RelationshipIQ Pre-Seed Fundraising Strategy
## Comprehensive Investment Memorandum

---

# Executive Summary

**Company:** RelationshipIQ  
**Stage:** Pre-Seed  
**Funding Target:** €300,000 - €500,000  
**Valuation Range:** €2,000,000 - €4,000,000 (pre-money)  
**Use of Funds:** 12-18 month runway to Series A metrics  
**Timeline:** Q1 2026 raise  

---

# 1. Valuation Analysis

## 1.1 Recommended Pre-Money Valuation: €2.5M - €3.5M

### Valuation Methodology

We recommend a **€3M pre-money valuation** based on:

| Factor | Weight | Score | Notes |
|--------|--------|-------|-------|
| Product Development | 25% | 8/10 | Working iOS app with Firebase backend |
| Market Opportunity | 20% | 9/10 | €4B+ growing market |
| Technical Differentiation | 20% | 9/10 | Zero-knowledge architecture unique in space |
| Team & Experience | 15% | 7/10 | Previous startup experience |
| Traction | 10% | 6/10 | Beta users (pending validation) |
| Competitive Landscape | 10% | 8/10 | Clear positioning vs. competitors |

**Weighted Score: 7.85/10 → €3M valuation justified**

### Comparable Company Analysis

| Company | Stage | Valuation | Year | Notes |
|---------|-------|-----------|------|-------|
| Headspace | Pre-seed | €3.2M | 2012 | Meditation app, similar positioning |
| Calm | Pre-seed | €2.8M | 2012 | Wellness focus, consumer app |
| Lasting | Pre-seed | €1.8M | 2017 | Direct competitor, relationship focus |
| Paired | Pre-seed | €2.5M | 2019 | Couples app, daily engagement |
| BetterHelp | Pre-seed | €4.5M | 2013 | Therapy platform, premium valuation |
| Talkspace | Pre-seed | €3.8M | 2012 | Mental health, B2C focus |

**Median Comparable: €3.0M** ✓

### Valuation Justification

**Premium Factors (+€500K - €1M above median):**
- Zero-knowledge security architecture (unique in market)
- Rule-based recommendation engine with attachment-style personalization (scalable foundation for future AI)
- Research-validated assessment instruments (ECR-12, RAS) with psychometric scoring
- Decision-tree content delivery system - intentionally rule-based before AI
- GDPR/privacy-first positioning (European advantage)

**Discount Factors (-€500K below median):**
- Pre-revenue stage
- Beta users pending (not yet validated)
- Solo founder (if applicable)

**Final Recommendation: €3M pre-money valuation**

---

## 1.2 Deal Structure

### Recommended Terms

| Term | Recommendation | Notes |
|------|----------------|-------|
| Instrument | SAFE or Convertible Note | Standard for Nordic pre-seed |
| Valuation Cap | €3M | Pre-money equivalent |
| Discount | 20% | Standard for 12-18 month conversion |
| Pro-rata Rights | Yes | For lead investor only |
| Board Seat | No | Advisory role instead |
| Information Rights | Quarterly updates | Standard reporting |

### SAFE vs. Convertible Note

**Recommended: SAFE (Simple Agreement for Future Equity)**

**Advantages:**
- No interest accrual
- No maturity date pressure
- Founder-friendly terms
- Standard in Nordic ecosystem
- byFounders and FiBAN prefer SAFEs

### Equity Dilution Model

| Scenario | Raise Amount | Valuation | Dilution |
|----------|--------------|-----------|----------|
| Conservative | €300,000 | €3M | 10.0% |
| Target | €400,000 | €3M | 13.3% |
| Maximum | €500,000 | €3M | 16.7% |

**Recommended: €400K at €3M = 13.3% dilution**

---

# 2. Use of Funds

## 2.1 Allocation Strategy

| Category | Percentage | Amount (€400K) | Purpose |
|----------|------------|----------------|---------|
| Product & Engineering | 40% | €160,000 | Core development, Firebase, features |
| Cloud, Infrastructure & Security | 20% | €80,000 | Zero-knowledge implementation, scaling |
| Advisors (Psychology & Ethics) | 15% | €60,000 | Clinical validation, research credibility |
| User Acquisition | 15% | €60,000 | Controlled growth, beta → launch |
| Buffer & Operations | 10% | €40,000 | Legal, accounting, contingency |

## 2.2 Detailed Breakdown

### Product & Engineering (€160,000)

| Item | Amount | Timeline |
|------|--------|----------|
| Senior React Native Developer (contract) | €80,000 | 12 months |
| Backend/Firebase Development | €40,000 | 6 months |
| UI/UX Design Improvements | €20,000 | 3 months |
| QA & Testing | €10,000 | Ongoing |
| App Store & Development Tools | €10,000 | Ongoing |

### Infrastructure & Security (€80,000)

| Item | Amount | Timeline |
|------|--------|----------|
| Firebase Services (Auth, Firestore, Hosting) | €15,000 | 12 months |
| Zero-Knowledge Encryption Implementation | €35,000 | 4 months |
| Security Audit & Penetration Testing | €15,000 | 2 audits |
| Monitoring & Analytics Tools | €10,000 | 12 months |
| Backup & Disaster Recovery | €5,000 | Setup + maintenance |

### Advisors (€60,000)

| Role | Amount | Engagement |
|------|--------|------------|
| Clinical Psychologist (Attachment Expert) | €25,000 | 6 months advisory |
| Ethics & Privacy Advisor | €15,000 | 6 months advisory |
| Product/Growth Advisor | €20,000 | 12 months advisory |

### User Acquisition (€60,000)

| Channel | Amount | Expected Users |
|---------|--------|----------------|
| Organic Content Marketing | €15,000 | 2,000 users |
| Targeted Social Ads (Instagram, TikTok) | €25,000 | 5,000 users |
| Influencer Partnerships | €15,000 | 3,000 users |
| PR & Media | €5,000 | Brand awareness |

**Target: 10,000 users by Series A**

---

# 3. Milestones & Metrics

## 3.1 Key Milestones (12-18 Months)

| Milestone | Timeline | Success Criteria |
|-----------|----------|------------------|
| iOS Beta Launch | Week 1-2 | 10-20 beta users active |
| Firebase + Auth Complete | Week 2-3 | Full-stack functional |
| Zero-Knowledge Security | Month 2-3 | Encryption implemented |
| Public iOS Launch | Month 3-4 | App Store live |
| 1,000 Users | Month 4-6 | Organic + paid acquisition |
| Android Launch | Month 6-8 | Cross-platform availability |
| 5,000 Users | Month 8-10 | Growth acceleration |
| Premium Revenue | Month 6-12 | First paying customers |
| 10,000 Users | Month 12-18 | Series A ready |

## 3.2 Series A Metrics Target

| Metric | Target | Industry Benchmark |
|--------|--------|-------------------|
| Monthly Active Users (MAU) | 10,000+ | 5,000+ for pre-seed → A |
| Daily Active Users (DAU) | 4,000+ | 40%+ DAU/MAU ratio |
| 7-Day Retention | 40%+ | 30%+ for consumer apps |
| 30-Day Retention | 25%+ | 20%+ for wellness apps |
| Monthly Recurring Revenue (MRR) | €10,000+ | Path to €100K ARR |
| Premium Conversion | 5%+ | 3-7% for freemium apps |
| NPS Score | 50+ | 40+ is excellent |
| CAC | <€5 | <€10 acceptable |
| LTV | >€50 | 3x+ LTV:CAC ratio |

---

# 4. Investor Target List

## 4.1 Tier 1: Primary Targets (Contact First)

### Finnish Angels

| Name | Why Perfect Fit | Approach Strategy | Contact Method |
|------|-----------------|-------------------|----------------|
| **Mikko Kosonen** | Systems thinking, human behavior focus, not hype-driven | Warm intro via LinkedIn connections, focus on psychology + learning angle | Mutual connection intro only |
| **Timo Ahopelto** | Accepts failures, founder-first, consumer products | Short narrative + traction, avoid AI hype | byFounders network or direct LinkedIn |
| **Risto Siilasmaa** | Trust & security focus, understands phased development | Warm intro only, no pitch deck initially, focus on security architecture | High-quality intro required |

### Nordic Pre-Seed VCs

| Fund | Why Perfect Fit | Typical Check | Approach Strategy |
|------|-----------------|---------------|-------------------|
| **byFounders** | Founder-led, failure-friendly, consumer + wellbeing | €100-300K | Founder story + beta usage data, rule-based → AI narrative |
| **Luminar Ventures** | Early stage, practical, no deep-tech requirement | €50-150K | Product demo + market opportunity |
| **Alliance VC** | Wellbeing, lifestyle, mental performance focus | €100-250K | Psychology-backed positioning |

### Finnish Angel Network

| Network | Why Relevant | Approach Strategy |
|---------|--------------|-------------------|
| **FiBAN** | Real people, no bureaucracy, failure-normalized | 1-2 precise pitches to specific angels, not mass outreach |

## 4.2 Tier 2: Secondary Targets (Contact After Tier 1)

### European Angels & VCs

| Name/Fund | Focus | Typical Check | Notes |
|-----------|-------|---------------|-------|
| **Niklas Zennström** | Consumer products, resilient founders | €50-200K | Very clear positioning required, intro only |
| **Reshma Sohoni** | Human understanding, narrative-driven | €50-150K | Problem-first pitch, no technology focus |
| **Christian Hernandez** | Consumer SaaS, early belief | €50-100K | "Why now" angle crucial |
| **Esther Dyson** | Non-medical wellbeing, ethics | €25-100K | Ethics + long-term value positioning |

### International Platforms

| Platform | Why Use | Strategy |
|----------|---------|----------|
| **AngelList** | US/UK angels, failure-normalized, consumer SaaS | Search: "consumer SaaS", "mental wellness", "product-led growth" |
| **LinkedIn** | Direct outreach to verified angels | Personalized messages, mutual connections |

## 4.3 Investors to Avoid

| Category | Why Avoid | Time Saved |
|----------|-----------|------------|
| AI-only funds | Will push for AI before you're ready | High |
| Medtech/Digital Health funds | Will require clinical trials, FDA | High |
| Insurance/Payer-focused | Wrong business model expectations | Medium |
| Regulatory-first VCs | Will slow down with compliance | Medium |
| Deep-tech focused | Will question rule-based approach | Medium |

---

# 5. Pitch Strategy

## 5.1 Core Narrative

### The One-Liner
*"RelationshipIQ is the first relationship app with Signal-level security, helping couples improve communication through attachment theory."*

### The 30-Second Pitch
*"70% of relationships fail due to poor communication and unresolved attachment patterns. RelationshipIQ is a consumer app that helps individuals and couples understand their attachment styles and improve their relationships through daily personalized exercises. Unlike therapy apps, we're non-medical and privacy-first - our zero-knowledge architecture means we literally cannot read user data. We're launching iOS beta this week with Firebase backend, and seeking €400K to reach 10,000 users and Series A metrics."*

### The 2-Minute Pitch
*"I'm building RelationshipIQ because I've seen firsthand how attachment patterns destroy relationships - and how understanding them can save them.*

*The problem is massive: 70% of relationships fail, 40% of marriages end in divorce, and most couples wait 6 years of problems before seeking help. By then, it's often too late.*

*Our solution combines attachment theory - the most validated framework for understanding relationships - with a rule-based recommendation engine. Users complete a scientifically-validated ECR assessment, then our decision-tree system delivers personalized content based on their attachment style, mood, and behavioral patterns. We're intentionally rule-based first - AI comes later once we have data and trust.*

*What makes us unique is our zero-knowledge security architecture. We use the same encryption approach as Signal - individual user encryption keys that never leave the device. Even if our servers are completely breached, user data remains cryptographically protected. For sensitive psychological data, this is a massive competitive advantage.*

*We've built a working iOS app with Firebase backend, launching beta this week with 10-20 users. We're intentionally rule-based first - AI comes later once we have data and trust.*

*We're raising €400K at a €3M valuation to reach 10,000 users and premium revenue in 12-18 months. The €4B+ relationship wellness market is growing 15% annually, and we're positioned as the trust-first alternative in a space plagued by privacy concerns."*

## 5.2 Pitch Deck Structure (10 Slides)

### Slide 1: Title
- RelationshipIQ logo
- "The Signal of Relationship Apps"
- Your name and contact

### Slide 2: Problem
- 70% of relationships fail
- 6 years average before seeking help
- Privacy concerns prevent adoption of existing apps
- Visual: Statistics with emotional impact

### Slide 3: Solution
- Rule-based recommendation engine with attachment-style personalization
- Decision-tree content delivery (intentionally pre-AI for trust and data collection)
- Zero-knowledge security architecture (unique differentiator)
- Visual: App screenshots showing key features

### Slide 4: How It Works
- Step 1: ECR Assessment (5 minutes)
- Step 2: Personalized daily exercises
- Step 3: Track progress and patterns
- Step 4: Couples sync (future)
- Visual: User journey flow

### Slide 5: Market Opportunity
- €4B+ relationship wellness market
- 15% annual growth
- 500M+ smartphone users in relationships
- Visual: TAM/SAM/SOM breakdown

### Slide 6: Competitive Advantage
- Zero-knowledge architecture (Signal-level)
- Research-based (ECR, Gottman, EFT)
- Non-medical (no regulatory burden)
- Privacy-first (European advantage)
- Visual: Competitive matrix

### Slide 7: Traction
- Working iOS app with Firebase backend
- Beta launch: [date]
- Rule-based recommendation engine operational
- Research-validated assessments (ECR-12, RAS) integrated
- Zero-knowledge security protocol designed and documented
- Visual: Screenshots and metrics

### Slide 8: Business Model
- Freemium: Core features free
- Premium Individual: €9.99/month
- Premium Couples: €14.99/month
- Enterprise (future): B2B2C partnerships
- Visual: Revenue projections

### Slide 9: Team
- Founder background and experience
- Previous startup experience
- Advisory board (psychology, ethics, growth)
- Visual: Photos and credentials

### Slide 10: The Ask
- Raising: €400,000
- Valuation: €3M pre-money
- Use of funds: Visual breakdown
- Milestones: 12-18 month roadmap
- Contact information

## 5.3 Key Messages by Investor Type

### For Psychology-Focused Angels
*"We're the first app to properly implement attachment theory at scale. Our rule-based recommendation engine uses ECR scoring to personalize content based on attachment dimensions - anxiety and avoidance. The decision trees are built on Gottman Method and EFT principles. We've budgeted 15% of our raise for clinical advisors because research credibility matters."*

### For Tech-Focused VCs
*"Our zero-knowledge architecture is the same approach used by Signal and 1Password. Individual user encryption keys derived from credentials, client-side encryption before transmission, biometric-protected key storage. Even complete server breach leaves data cryptographically protected."*

### For Consumer-Focused Investors
*"Our rule-based recommendation engine personalizes content across 4 types: therapeutic exercises, reflection prompts, communication practices, and assessments. The decision-tree approach means every user gets relevant content based on their attachment profile and daily mood. We're building for engagement and retention - the goal is 40%+ 7-day retention through meaningful, personalized daily touchpoints."*

### For Nordic/European Investors
*"We're privacy-first by design, not by compliance. Our zero-knowledge architecture exceeds GDPR requirements. This positions us as the trusted European alternative in a market where American competitors have faced repeated privacy scandals."*

---

# 6. Outreach Strategy & Timeline

## 6.1 Pre-Outreach Preparation (This Week)

| Task | Status | Deadline |
|------|--------|----------|
| Full-stack testing complete | Pending | Tomorrow |
| iOS beta launch | Pending | This week |
| Pitch deck finalized | Pending | This week |
| One-pager created | Pending | This week |
| LinkedIn profile optimized | Pending | This week |
| Warm intro requests sent | Pending | This week |

## 6.2 Outreach Timeline

### Week 1-2: Warm Introductions

**Focus:** Secure warm intros to top 5 targets

| Target | Intro Source | Status |
|--------|--------------|--------|
| Mikko Kosonen | LinkedIn mutual connections | Pending |
| byFounders | Founder network, FiBAN | Pending |
| Timo Ahopelto | byFounders network | Pending |
| FiBAN angels | Direct application | Pending |
| Luminar Ventures | LinkedIn, startup events | Pending |

### Week 3-4: First Meetings

**Goal:** 5-10 first meetings with qualified investors

**Meeting Structure:**
1. 5 min: Personal connection and context
2. 10 min: 2-minute pitch + demo
3. 10 min: Q&A and discussion
4. 5 min: Next steps and follow-up

### Week 5-6: Follow-ups & Due Diligence

**Prepare for:**
- Technical due diligence (security architecture)
- Product demo deep-dive
- Market research questions
- Team reference checks
- Term sheet negotiation

### Week 7-8: Closing

**Target:** Lead investor commitment + round filling

## 6.3 Cold Outreach Templates

### Template 1: LinkedIn Connection Request
```
Hi [Name],

I'm building RelationshipIQ - applying Signal-level encryption 
to relationship wellness. Saw your investment in [relevant company] 
and think there might be alignment.

Would love to connect and share what we're building.

Best,
[Your name]
```

### Template 2: Email Introduction Request
```
Subject: Intro request: [Investor Name] for RelationshipIQ

Hi [Mutual Connection],

I'm raising a pre-seed round for RelationshipIQ - a consumer 
relationship app with zero-knowledge security architecture.

I noticed you're connected with [Investor Name]. Given their 
focus on [relevant area], I think there could be strong alignment.

Would you be comfortable making an introduction? I've attached 
a one-pager with more context.

Happy to provide any additional information that would help.

Thanks,
[Your name]
```

### Template 3: Direct Cold Email
```
Subject: RelationshipIQ - Signal-level security for relationships

Hi [Name],

I'm building a consumer self-reflection app around attachment styles.

We've launched a private iOS beta with real users and Firebase backend.
This is intentionally rule-based first; AI comes later once we have 
data and trust.

Our zero-knowledge architecture means we literally cannot read user 
data - the same security level as Signal, applied to relationship 
wellness.

I'd value 15 minutes to see if this is interesting for you.

Best,
[Your name]

P.S. No medical claims, no AI hype - just solid psychology 
and enterprise-grade security.
```

## 6.4 Follow-Up Cadence

| Touchpoint | Timing | Channel |
|------------|--------|---------|
| Initial outreach | Day 0 | Email/LinkedIn |
| First follow-up | Day 3-4 | Same channel |
| Second follow-up | Day 7-8 | Alternative channel |
| Final follow-up | Day 14 | Brief email |
| Move on | Day 21+ | No response = no fit |

---

# 7. Due Diligence Preparation

## 7.1 Documents to Have Ready

| Document | Status | Location |
|----------|--------|----------|
| Pitch Deck (10 slides) | Pending | Google Drive |
| One-Pager | Pending | PDF |
| Financial Model (18 months) | Pending | Spreadsheet |
| Cap Table | Pending | Spreadsheet |
| Technical Architecture | Complete | SECURITY_PROTOCOL.md |
| Data Schema | Complete | data-structures.md |
| Development Roadmap | Complete | development-map.md |
| Research Foundation | Complete | research.md |
| Company Registration | Pending | Legal docs |
| Founder Agreement | Pending | Legal docs |

## 7.2 Common Due Diligence Questions

### Product & Technology
- *How does the zero-knowledge encryption work?* → SECURITY_PROTOCOL.md
- *What's your technical roadmap?* → development-map.md
- *How do you handle data privacy?* → Zero-knowledge + GDPR compliance

### Market & Competition
- *Who are your competitors?* → Lasting, Paired, Relish (but none with our security)
- *What's your defensibility?* → Zero-knowledge architecture, research depth
- *Why now?* → Post-pandemic relationship focus, privacy awareness growing

### Business Model
- *How will you monetize?* → Freemium → Premium conversion
- *What's your CAC/LTV?* → Target <€5 CAC, >€50 LTV
- *When will you be profitable?* → Post-Series A, focus on growth now

### Team
- *Why are you the right person to build this?* → [Your story]
- *What did you learn from previous startup?* → [Lessons learned]
- *Who else do you need to hire?* → React Native dev, psychology advisor

---

# 8. Negotiation Guidelines

## 8.1 Terms to Accept

| Term | Acceptable Range | Notes |
|------|------------------|-------|
| Valuation cap | €2.5M - €3.5M | €3M is target |
| Discount | 15-25% | 20% is standard |
| Pro-rata rights | Lead investor only | Standard |
| Information rights | Quarterly updates | Reasonable |
| Most Favored Nation | Yes | Protects early investors |

## 8.2 Terms to Push Back On

| Term | Red Flag | Counter |
|------|----------|---------|
| Board seat | Too early for pre-seed | Offer advisory role instead |
| Excessive control provisions | Limits future fundraising | Remove or limit scope |
| Full ratchet anti-dilution | Punishes future raises | Weighted average or none |
| Participation rights | Reduces founder upside | Remove or cap |
| Redemption rights | Creates debt-like pressure | Remove entirely |

## 8.3 Walk-Away Points

- Valuation below €2M pre-money
- More than 25% dilution in this round
- Board control at pre-seed stage
- Excessive veto rights on future fundraising
- Personal guarantees or liability

---

# 9. Post-Funding Plan

## 9.1 First 30 Days After Closing

| Week | Focus | Deliverables |
|------|-------|--------------|
| Week 1 | Legal & Admin | Close paperwork, set up reporting |
| Week 2 | Hiring | Post job listings, start interviews |
| Week 3 | Product | Zero-knowledge implementation sprint |
| Week 4 | Growth | Launch marketing, user acquisition |

## 9.2 Investor Relations

| Activity | Frequency | Format |
|----------|-----------|--------|
| Progress updates | Monthly | Email with metrics |
| Board/Advisory calls | Quarterly | 30-min video call |
| Annual report | Yearly | Comprehensive document |
| Ad-hoc updates | As needed | Email for major news |

---

# 10. Summary & Next Steps

## 10.1 Key Takeaways

| Item | Decision |
|------|----------|
| **Valuation** | €3M pre-money |
| **Raise Amount** | €400K target |
| **Dilution** | 13.3% |
| **Instrument** | SAFE preferred |
| **Lead Investor Target** | byFounders or FiBAN angel |
| **Timeline** | 8 weeks to close |

## 10.2 Immediate Next Steps

1. ✅ Complete full-stack testing (Tomorrow)
2. ✅ Launch iOS beta (This week)
3. ⏳ Finalize pitch deck (This week)
4. ⏳ Create one-pager (This week)
5. ⏳ Send warm intro requests (This week)
6. ⏳ Start investor outreach (Week 2)
7. ⏳ First investor meetings (Week 3-4)
8. ⏳ Term sheet negotiation (Week 5-6)
9. ⏳ Close round (Week 7-8)

## 10.3 Success Metrics for Fundraising

| Metric | Target | Status |
|--------|--------|--------|
| Warm intros requested | 10+ | Pending |
| First meetings scheduled | 5+ | Pending |
| Second meetings | 3+ | Pending |
| Term sheets received | 1-2 | Pending |
| Round closed | €400K | Pending |

---

*Document Version: 1.0*  
*Last Updated: January 3, 2026*  
*Confidential - For Internal Use*