How functional must a prototype be if my goal is to get an investor or potential partner interested in the concept?
I intend to build out a prototype to see if people would be interested in partnering with me (I need developers), and possibly even investors to back me in a project I am working on.
I was going to spend some money on development of a prototype, but than I realized that I could probably just make the site "seem" functional instead of actually being functional. For example, I could just make form buttons go where I want, and I could create static links.
Is this static "proof of concept" good enough? Do I really need to have something more functional, or can I save my money for the beta development?
Clarification added August 8, 2008:
I will have enough money to bootstrap this development, however, I would much rather partner with a strong developer.
Good Answers (4)
If you are looking for investment, then you'll need to convince people that the product could work. In today's internet-savvy world, dummy functionality is only reserved for those elements of the product which are trivial but might be time-consuming. Most investors I have demo'd to are much more likely to lay down hard cash if they can play with the tool themselves, and so a tip for gaining trust in the product is research the investors and make sure their interests are covered in the sample data/funcitonality. Beware, they are clever people who will not be fooled (for long at least) by pretend functionality that's difficult to build. Honesty will get to someway as well - if you are showing functionality that's non-trivial and dummied up, then explain why you think it can be done.
If you are showing developers, then it's more likely to be about the technical challenge and the uniqueness and interest in technology terms. They like a challenge, they like to know they can look back to the product and feel proud of their involvement, and that future employers will see it as a wise career move.
Good luck!
Rick D
3D Web User Interface Designer / 3D artist / Graphic Designer
Best Answers in: Web Development (7), E-Commerce (2), Freelancing and Contracting (1), Graphic Design (1), Distribution (1), Blogging (1)
I couldn't tell from your question exactly what type of project you are working on (intenet startup?), however in the relatively short time I have been talking to people and reading a lot about venture capital I have come to some conclusions at least as to the approach I plan to take for my future startup projects for getting VC funding. Basically, it is the most difficult to try to obtain funding if you do not yet have a functioning website / product, even if you have a functional beta. The VC's care about potential for future growth and the best way to show them this potential is to essentially "bootstrap" your project at first and get it up and running with a user / client base as quickly as possible. So if you are building a new social network rather than making an alpha demo to show the VC's it would be better to get the site up and running first and gain a loyal userbase (even if its only a 1,000 people or so at first) this is more likely to attract VC attention. The bigger userbase or client base you can attract before seeking funding the better your chances become of attracting VC's, there are plenty of stories of VC's seeking out startups rather than the startup founders seeking out the VC's when the startups have started initially without VC funding. Of course you can go the other route, and many do, but I personally would rather figure out a way to get the project rolling first before talking to any investors.
Japheth T
Managing Director / Developer at Satellite
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Hi James,
I am a developer and have developed prototype products in the past.
When it comes to seeking venture capital for a project, the venture capitalists want to know their money will be an investment in something with real potential. The better the potential, the bigger the investment, usually.
By having a functional prototype with an existing user base, you are proving potential. Until you have something functional, and with real people using it, your idea is just an idea that doesn't necessarily have any true value. The investor needs to see that your product is something people will definitely actually use, not just something you think sounds like a great idea that people might use.
Do you get me?
Anyway, hope that was helpful, if I can help any further feel free to get in contact.
Japheth
Trevor B
Software Engineer at Aria Networks
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Hi James,
In my experience I have found that prototypes need to show more than just "proof of concept". You have to also demonstrate a road to product. I've worked on two products for a couple of major telecomms organisations and I'd be happy to discuss ways I could partner with you.
Please get in touch to see if we can help you.
Kind regards,
Trevor.
Links:
More Answers (2)
Bret O
Management at Famous Footwear
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Hi James,
The answer will depend on what the particular person is looking for in the way of a model. When presenting our MBA business plan to VC during a competition the MBA program holds we used a 3-D design program to show the concept. While they liked this they suggested that we might want to have a least a working scale model to show proof of concept in a more favorable manner, and of course if we wanted to really wow them a fully scale prototype would be best.
The bottom line is that the investor will be the determinant, but if the product is to be physical product (not software or similar) a physical model is best.
Bret
Hello...
Your GUI must rock.. Most investors wouldnt know head or tail of the guts of the system even if you explained it all. The most important part of a pitch is the presentation, the forecast of sales, market domninance possibility and the GUI.
So essentially, that means even if you have a databsae driven idea, you can use some hardcoding and just focus on having a snappy UI.
Now of course, most investors will also ask you about references.. which means you must have an existing (installed) product base.. that always helps.
Regards
Mahesh Kondwilkar
