Angel Investors and Start-up Funding

One type of customer we often see is the software start-up in fundraising mode. The founder is usually working on an angel round of funding, and wants to create an interactive prototype of the software product that they can show to potential angel investors. ProtoShare works really well for this.

I can tell you from personal experience as an angel investor that it can be difficult for an investor to grasp a business idea in the abstract. Unless I can see what the founder has in mind for a software product, it can be all too easy to dismiss the idea because of a lack of understanding. If I can see and interact with a prototype of the software, it’s usually much easier to grasp the idea and get behind it.

Until the founder successfully raises their angel funding round, they usually won’t have the ability to build the actual software product itself – that’s why they are out raising money. But ProtoShare costs only $29 a month. In a few weeks (and sometimes over a weekend), the founder can create a functioning prototype and be out on the fundraising trail. It’s a very small investment that can significantly improve the odds of a successful fund-raise.

If the fundraising effort is a success, this will be the best money the founder ever spent. And if the start-up doesn’t get funded, at $29 a month, the founder has spent under $100, rather than tens of thousands on actual software development.

I guess the surprising thing is that we don’t see more customers like this.

This entry was posted in Blog, Business, Industry, Prototyping Benefits. Bookmark the permalink.

Previous post:
Next post:

One Comment to Angel Investors and Start-up Funding

  1. Seraph Group says:

    It’s hard to come by knowledgeable people in this particular subject, however, you sound like you know what you’re talking about!
    Thanks

Leave a Reply

Your email address will not be published. Required fields are marked *