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The Power of Proof Of Concept

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Proof of Concept
This thing will totally work.

One of the lessons I’ve learnt as I move on to a new startup is that proof of concept is critical. Investors are like Hollywood execs. If the pitch doesn’t grab them in twenty seconds it’s over. And what better way to get their attention than with something that actually works when you click “go”.

Investors want to see that they’re putting their dough into something that’s more than talk, more than an idea on a prettified well-written deck. The more I explore the startup world, the more it strikes me that investors value a few things above all else, tangibility, simplicity, and its first cousin, clarity.

The bad news is that a proof of concept isn’t easy to crank up, especially if the concept is challenging from an engineering standpoint. The good news is that raising a little seed money to get it done is more possible than a full angel round, and that if all else fails bootstrapping for equity is possible.

The role of the deck is really to make a case that there’s a market for the venture, and to showcase the Founders of the company that’s trying to make it happen. In other words, having a deck without a POC is like bluffing at Texas Hold’em when everyone else at the table is a pro.

The only difference is that instead of losing your shirt, you’ll just be wasting your time.

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Written by coolrebel

December 17, 2012 at 6:15 pm

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