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Re: [newtech-1] Proof of Concept Test Data for Investors

From: Peter B.
Sent on: Wednesday, March 27, 2013 4:42 PM
A few comments:
- You don't have to open your app up to the world to get useful feedback (although doing so may give you more and better feedback on certain things).
- What are you trying to prove? I don't think "proof of concept" is the best metaphor any more. Look at your business plan. Now pretend someone else gave it to you who you didn't know, didn't like nd they wanted you to invest your entire life savings into it. What reservations would you have? What questions would you ask? Maybe whether people would sign up. Maybe whether people would enter a credit card. Maybe whether they'd keep using it. Maybe whether they'd tell their friends. Maybe whether you could covert paid traffic cost effectively enough to scale marketing profitably? List those assumptions. Figure out the cheapest and quickest way to validate the riskiest ones. Do that. The more of those you de-risk, the more likely you are to be able to raise.

If you really have a hard time with this, ask some angels what they'd like to see before they'd put in some money. Get a consensus and then find a way to do those things. Doesn't guarantee you'll get funding, but it probably moves you in the right direction. Sometimes it's getting a handful of people to use it on a regular basis for a month. Sometimes it's getting the first 100 people paying $29.99 a month. Sometimes it's getting 10,000 freemium users with 100 converting to paid. Sometimes (for a consumer play without a monetization model) it might be getting 5 or 6 figure traction on the platform.

Best Wishes,

On Mar 27, 2013, at 1:10 PM, Chris Vitale <[address removed]> wrote:


I would like to demo my app using a specific test market and to collect real information. I would like to deploy my application to[masked] users...

How do you determine when enough data is good enough to prove your concept?

A successful test of 10 users showing positive results or a thousand users showing positive results?
Over what period of time?

I'm now assuming to provide investors with a proof of concept I should build a web app. The reason for this is I've developed an application software and hardware to be integrated with current applications in the market i'm targeting.

How have you collected information in your markets and proved your software application concepts without releasing it to the world?


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