Investing in pre-revenue companies can be risky, but it is often the only way to enter at a reasonable valuation when a product requires long-term development, like a new drug or complex hardware. Innovation requires risk, but investors can minimize exposure by focusing on specific data points.

One key factor is the amount of money a company has raised before its current round. A significant amount of pre-round funding signals that other investors believe in the company’s potential, making it worth deeper consideration. Raising substantial capital in prior rounds also reduces risk by demonstrating that the company can attract the resources needed for its growth.

We analyzed five pre-revenue companies currently raising capital through Reg CF and Reg A+, focusing on those with the highest previous funding.

  • Future Cardia leads the list. This MedTech startup, developing a heart failure cardiac monitor, has already conducted human trials—an unusual milestone for a company raising through equity crowdfunding (ECF). Its success in securing funding reflects the unique investment opportunity at this stage.

  • Pirouette Medical, another innovative pre-revenue medtech company with strong growth potential, has already attracted backing from prestigious institutional investors, including Y Combinator, Liquid 2 Ventures, and Safar Partners.

  • Spectrum Spine, specializing in proprietary surface treatment for implant devices, has secured over $9.7 million in funding and holds over 85 issued patents.

  • Starfighters focuses on aerospace and defense, offering hypersonic testing and small satellite launch services. Aerospace companies typically require significant capital before generating revenue, making early investments critical to their development.

  • Ryca International is innovating in the consumer goods space with its advanced toothbrush technology. The company has advanced its product development through multiple crowdfunding platforms and is targeting a product launch by early 2026.

While pre-revenue investments carry inherent risks, these companies demonstrate the potential to deliver substantial value backed by significant prior capital raises and innovative products.