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What is product quality?

What is more important: Novelty of idea OR quality of final product?

  • If someone has an idea and with no real tech background and without a tech team, but the financial ability to outsource the development of the website (> $40k). Given that outsourcing could effect the quality, what would be the defining factor for VCs: Novelty OR Quality?

  • Answer:

    If you have the ability to build a product, however crude or early stage it might be, by all means DO SO. Any decent VC will be unlikely to invest in a non-technical founder with nothing but an idea to show for (it's not the 1990s anymore!). If, on the other hand, that non-technical person has taken the initiative to build a prototype or actually get a product to market, the chances of getting funding are much higher. Note, the "finished product" (or prototype) doesn't have to be perfect. It doesn't even have to be great. Obviously higher quality = better, but the fact that you've taken the initiative to start building something speaks volumes. Ideas are cheap, especially in the tech world. Execution is hard. Start executing to show what you can deliver. Building an early prototype also helps you attract tech talent, because it gives people something to look at and play with, and it communicates your idea in a more "tangible" form. Then you can shop it around to potential technical co-founders to get them excited about your vision. Heck, even a Powerpoint deck mocked up to look like your future product, with links to different views and flows, is preferable to just pitching an idea. If you have the means to actually build a working prototype, so much the better! Business guys with an "idea" are a dime a dozen, and most technical talent (and VCs) won't pay much attention these days without some other sign of traction, especially because the financial and technical barriers to entry are getting lower and lower. Finally, if you build a prototype and then succeed at getting funding, your valuation will be higher because you have a product and some traction which presumably is worth something. If all you have is an idea, you're basically starting from $0 pre-money. Additional great advice on how to start a tech company as a non-technical person can be found here:

Peter Berg at Quora Visit the source

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Other answers

There are almost no software ideas where a decent proof of concept can't be put together for more than $10k.  In most cases, it'll be nearer $5k to get you something that looks a million dollars, even if it is a bit rough behind the scenes. As Peter mentions below, any VC (let alone a decent one) isn't going to pump cash into someone with zero experience and only a dream.  It's not 2000 any more ;) Get that MVP built, get a few early stage customers or at least have some meaningful engagement with prospects, then you're much better placed for some angel investor pitches. Ping me to discuss the $10k (or $5k) challenge if you want!

Jack Thorogood

Even if you are a technical person, don't go for perfection from Day 1 because the business model for your startup will most likely change based on market response.  In your case, you should try the outsourcing approach as a minimum.  You will probably also need to start getting some traction in the market to qualify for VC funding consideration.

JMichael Mangalam

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