Using Prototypes To Raise Funding

In raising funding, a prototype is invaluable.

Here are some reasons why investors fund projects that have a prototype:

The prototype demonstrates you can build it.

It gives you a tool to engage customers.  

Prototypes help you define the product better by observing how the customer interacts with it.

Prototypes help validate the market and customer acceptance of the product.

Prototypes help build a better financial forecast as the cost to build and maintain the product becomes more accurate.

Prototypes help recruit team members who can see the vision of the company coming to life in the product.

Prototypes help define the intellectual property better.

Prototypes also help recruit partners, suppliers, and contractors.

Many startups skip the prototype phase and go straight to building the first product. 

This can be challenging as the cost to build a final product is much greater than a prototype and therefore requires more funding.

Consider these reasons in planning your product launch strategy with a prototype.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

---

Thank you for joining your host Hall T. Martin with the Startup Funding Espresso — your daily shot of startup funding and investing.

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org  

Check out our other podcasts here: https://investorconnect.org/ 
For Investors check out: https://tencapital.group/investor-landing/ 
For Startups check out: https://tencapital.group/company-landing/ 
For eGuides check out: https://tencapital.group/education/ 
For upcoming Events, check out https://tencapital.group/events/  

For Feedback please contact info@tencapital.group   

Please follow, share, and leave a review.

Music courtesy of Bensound.

Copyright (c) 2024, Hall Martin and investorconnect.org. All rights reserved.

Disclaimer:
Hall T Martin is the director of Investor Connect, which is a 501(c)(3) nonprofit dedicated to the education of investors for early-stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon for the basis of investment decisions.