Pre-Seed Investments Under $10 Million Thrive in San Francisco's Hacker Houses, Defying Broader Market Trends

San Francisco, CA – Venture Partner Josh Constine of SignalFire recently revealed a surge in early-stage startup activity, stating he has personally written "10 checks at sub $10M valuations in the past 4 months." This observation, shared on social media, highlights a robust pre-seed funding environment, particularly within San Francisco's hacker house ecosystem, even as broader seed-stage investment figures show a decline.

Constine, a prominent investor known for his focus on pre-seed consumer startups, attributed this thriving activity to the unique collaborative atmosphere of hacker houses. His firm, SignalFire, invests across various stages, with Constine specializing in identifying promising ventures at their earliest phases. His recent investment pace suggests a concentrated pocket of innovation and funding at the foundational level of the startup world.

This localized boom in pre-seed funding comes amidst a more cautious overall market. According to a Tracxn report for H1 2025, seed-stage funding in the United States experienced a 32% drop compared to the previous two half-year periods, totaling $2.9 billion. While overall U.S. tech funding saw a significant increase, largely driven by late-stage investments, the early-stage landscape appears to be contracting, making Constine's report of thriving pre-seed activity in specific niches particularly noteworthy.

Hacker houses, communal living and working spaces for entrepreneurs, have historically played a crucial role in fostering startup culture in Silicon Valley. These environments often facilitate rapid idea iteration, collaboration, and networking, potentially creating fertile ground for the types of early-stage ventures that attract pre-seed investors like Constine. His remarks suggest that these informal hubs continue to be vital incubators for new companies, providing a counter-narrative to the broader funding slowdown for nascent startups.