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Ask HN: How developed does a prototype need to succeed raising seed capital

8 points by curt ↗ HN
I’ve gone through the process a few times but always with physical products or in a supporting role. This is my first time as the lead of a completely web based product and am trying to figure out how well the site needs to be developed before I can begin approaching investors with success. Right now I have the user facing side near completion minus the order system (credit card, order tracking, history, etc). Even without a slide deck, the site’s at a stage where any investor can review it and know exactly what the company is and how it will operate.

For those that have raised money or failed to, what stage should a site be at? Not looking for much just a moderate seed capital investment to hire 2 people and begin a marketing campaign.

6 comments

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Travis
I was in a similar spot about 6 months ago, and was looking in the SoCal angel scene.

I found that having a prototype was awesome. Except that my prototype only had a few early users (under 1k, IIRC). The angels were impressed I had put it together (they said it proved my abilities), but it didn't prove anything about my business model or company or industry.

So, yeah, prototype can sell them on your skills. But traction is what sells investors on your business model.

HackrNwsDesignr
I agree with Travis, you shouldn't really be worried about getting seed capital. We believe that you can believe in your product enough to make it do well, we've all been there, but the fact is that's not enough. So what is? Like Travis said: traction. If you build the prototype and then get traction you can goto the VC's, heck you might be in such a good spot you can call the shots like zuckerberg did with facebook. There's no harm in doing this first, and thinking you need capital is usually a false hurdle.

bottom line: keep going.

pinksoda
Unless you have a history of success, it will be tough for you to get any investing without a site that has traction.
staunch
This is the cold truth.
damoncali
It's not the technical development that matters so much as the sales development. Technical risk is really a non-issue for most products when compared to the risk of a marketing or operational flop.

Sell it, then go raise money.

neworbit
Get started.

Your objective at this stage shouldn't necessarily be to close investors (though if they express interest, be prepared to move on it) but to raise awareness and show

A) you exist

B) you have a good idea

C) you are building traction

D) three months from now, as things initially prove themselves out, that you are an interesting investment.