Do take our business plan and talk with "an angel" now?

• Three years ago, a friend and I began developing a web app that allows for instant video conferencing. It uses 15kbs, and uses Flash to achieve its internet goodness. It just works, no problem. And we have had success with it - as a product at two separate companies, no less, building it from scratch both times. Up until now we have been charging for it, month to month, as a service for businesses that can want something better than IM chat. (It has a lot of extra "bells and whistles.")But now we want to switch it up. We want to go Web 2.1. When I say 2.1, I mean take a good idea - two-way television (or "youtube with a phone receiver") - and plugging it into an established Web 2.0 business model. So this shift plus another shift into the Web 2.0 business model. Voila! Web 2.1! It doesn't matter if only one person has the service, even. You can see and hear me, and type back your response. (Even if you can't hear me, you can see me and we can both "type-talk." But I guarantee you want to plug in your webcam and use it after you see (and hear) me on my end. Essentially, how I explain the idea is it's "the shift from book to television, sythesized with yet another shift - to telephone - and add this to a Web 2.0 business model, and everyone wants to use it. Scratch that, once you use it, you'll never want to use an ordinary telephone again. So anyway that's the background. Now for the question. My buddy and I are hooked up with two small companies that see what we are saying but are neither interested in moving out of their respective fields (both transportation) to move into specializing in content and... happyhappyjoyjoy... dataflow. As it stands, this is an old model example of the cart steering the horse. Presently, I am all for presenting this to an angel and getting funding to staff and build our web app as a videophone for ordinary users, and a videoconferencing tool for business users (the Pro account). But the two bosses of both of the companies we represent are focussed elsewhere. Both are happy to use it for their own ends, and sell it to other commercial subscribers for a large monthly fee. In other words, the old model. Do we 1) move again, and rebuild the service again 2) license the service from the primary company for exclusive use, or 3) do something to get the two owners to realize the true value of it, 4) stay with the companies but break off and set it up as a separate division.

• Answer:

  Followup Um, skype has had cross platform video for nearly a year. I know this because I moved my family from AIM video to Skype, specifically cause all they had to do was download skype and go. It worked great, with zero reconfigurations of router firewalls. It's learning curve is no more difficult than IM. Where I think you have two markets: a) business anonymous communications (such as support with video) b) the social networks (facebook, myspaces, linkedin) are huge and looking for a competitive advantage. This would qualify. Online dating services as well. So, of your question, I'd say #3 or #4. Convince your owners of it's value - do not rebuild. Go to them with #3 and develop a separate company and that offer you a longer term financial interest (which will help convince them that it has value; else why would you want a piece of the action.)