Just spent some time with a young first time entrepreneur *full* of potential. He’s talking to VCs trying to get financing to build his idea. It’s a web app, so here’s the deal. IF you are building a web app DO NOT GO TO VCs…at least for a while. First you need to:
1) Build the app and release it live
2) Get some users
3) Interview and understand those users intimately
After you have done these three things, maybe you have a case to speak to a VC about what you are up to. Different rules apply to serial entrepreneurs who have established credibility to stand on, but first-time entrepreneurs need to prove themselves – keep in mind VCs are being flooded with business plans for websites…they are a dime a dozen like it’s 1999. And if it makes you feel any better, no one believed in FreshBooks when we started talking to people about financing in 2004…so don’t let the bastards grind you down.