I’m working on my own consumer web service. At first, I went for it at angels and VC’s armed with a ppt and business case. After a few meetings I evaluated the first steps and came to the conclusion that a first prototype would improve my chance of getting funding and the deal conditions. Then I read this post from Peter Rip at Crosslink Capital talking about a changing entrepreneurship/VC funding model:
“By now we are all well-acquainted with the observation that software is cheaper than ever to produce. But that is only half the story. The other half is that it takes several iterations — several trials — to hit it big.”
I was aware of these insights but what struck me is his observation that the second point translates in going for the availability of funding after the traditional period of 12-18 months. Recommended reading if you are considering venture capital funding.