Kate McAndrew on Pre-Seed Fundraising ($100M Baukunst Fund)

Many investors talk about being "founder-friendly." But the best partners are often those who have been in the trenches themselves. Kate McAndrew, co-founder of the $100M pre-seed fund Baukunst Ventures, didn’t just study startups—she lived the life, from sleeping on the floor of a warehouse to rising from associate to partner over eight years at VC firm Bolt.

Her story isn’t just a biography; it’s a playbook for pre-seed founders. It reveals what a top-tier, operator-turned-investor actually looks for and how you can build a fundable company from day one. We’ve broken down her journey into actionable lessons.

What "High-Conviction" Pre-Seed Investing Really Means

Baukunst Ventures focuses on pre-seed companies at the "frontiers of technology and design." This isn't just a nice-sounding phrase. It’s a filter. It means they aren’t looking for a slightly better CRM or another delivery app. They are looking for founders building things that are fundamentally new, weird, and ambitious.

At this stage, you have no revenue, no metrics, and maybe not even a full product. The only thing an investor can underwrite is you, your team, and your insight. "High-conviction" means they are making a concentrated bet on your ability to execute on a non-obvious idea.

What They're Looking For

A Unique Insight: What do you understand about the world, a market, or a technology that others don’t? This is the core of your entire company. You should be able to articulate this in a single, compelling paragraph. · Founder-Market Fit: Why are you the person to build this? Kate’s journey shows a pattern of someone obsessed with building and leading, from childhood milk-shake stands to co-founding a major fund. You need a story that explains why you are uniquely suited to this specific challenge. · A Bias for Action: Kate’s path wasn't linear. She consulted, built houses for Habitat for Humanity, and jumped at the chance to help launch an accelerator with no prior VC experience. Investors want to see evidence that you make things happen, even with limited resources. Show them your prototypes, your early customer interviews, or the community you've built around the idea.

Common Pre-Seed Pitch Mistakes to Avoid

Leading with TAM: No one cares about a multi-billion dollar Total Addressable Market if your initial idea is weak. At pre-seed, the focus is on the micro: your specific insight and the small group of users who desperately need your product right now. · Hiding the "Weird": Early-stage founders often try to make their idea sound safe and conventional to appeal to everyone. This is a mistake. Pre-seed specialists are looking for outlier ideas. Embrace what makes your approach strange and contrarian. · A Weak "Why Now": Why is this company possible in the next 18 months and not five years ago? Is it a new technology, a shift in consumer behavior, or a new regulatory environment? Be extremely crisp on this point.

How to Choose Your First Investor

When Kate joined Bolt, she was the only West Coast employee for a firm closing its first $32M fund. She was given immense trust and autonomy. More importantly, she received a rare "apprenticeship" from a senior partner with 30 years of experience, learning not just how to invest, but how to manage boards, source M&A deals, and construct a fund.

This is the model you should seek in your first investor. You aren’t just taking money; you are taking on a business partner who will teach you the game.

A Checklist for Vetting Your Pre-Seed Investors

What is their post-check plan? Ask them: "Once you invest, what happens in the first 90 days?" A great answer is specific, mentioning introductions to specific people, help with GTM, or recruiting support. A bad answer is vague: "We're here to help however we can." · How do they behave in a crisis? Ask for references from founders whose companies they funded that failed. This is the single best indicator of an investor's character. Will they support you and help you wind things down gracefully, or will they become adversarial? · What is their follow-on strategy? A $100M pre-seed fund like Baukunst has a huge advantage: deep pockets for follow-on rounds. A smaller micro-VC ($5-15M) may not be able to invest in your Seed or Series A, creating negative signaling. You need an investor who can support you for multiple rounds. · Is their conviction yours? Kate left a partnership at an excellent firm to start Baukunst because she wanted to invest against her own thesis. Your investor must share your fundamental belief in the market and mission. If they seem lukewarm on the core vision, they will get nervous the moment you hit a roadblock.

For a pre-seed company, the right investor provides more than capital; they provide a curriculum. They teach you how to build a board, how to hire executives, and how to tell a story that gets you to the next fundraise. Choosing the right one is your first critical test as a CEO.

From Scrappy Beginnings to a $100M Fund

Kate’s early days in Silicon Valley—sleeping on a warehouse floor, immersing herself in the community of builders—weren’t just a fun story; they were a strategic advantage. She built a network from the ground up, based on shared interests and helping others, not transactional "networking." This deep immersion is how she got her first venture job and how she developed an eye for talent.

Her decision to co-found Baukunst and raise $100M for a first-time fund—a notoriously difficult task, especially as a new mother—is a testament to the resilience required in the startup world. Her mantra: "Failure was not an option." This is the same energy founders must bring to their own ventures.

A $100M pre-seed fund is a powerful statement. It signals the ability to write larger initial checks (e.g., $1M-$2M), which gives you more runway to find product-market fit. It means the fund has dedicated reserves to lead or participate significantly in your Seed and Series A rounds, protecting you from dilution and signaling strength to future investors.

How to Apply This This Week

Reading about fundraising is one thing. Acting on it is another. Here are three concrete steps you can take based on Kate's playbook.

Write Your "Personal Story" Paragraph. Forget the pitch deck for an hour. Write a single paragraph that answers: "Why are you obsessed with this problem, and why is your background the perfect preparation to solve it?" This will become the core of your pitch. · Identify Five "Apprenticeship" Investors. Make a list of five potential pre-seed investors who have deep operating experience or a clear history of hands-on mentorship in your specific domain. Research their portfolio and find a founder you can ask for a warm introduction. · Pressure-Test Your "Why Now." Write down the three biggest macro shifts (technological, cultural, regulatory) that make your startup possible right now. If you can’t name three, you haven't dug deep enough. Your idea needs urgency.