1) Investors like big ideas. If you can't tell a convincing story about how you've got the potential to build a $500m business, almost all investors will pass.
2) Traction wins. Don't build a prototype. Build a product. Prove that users want what you build and show a healthy growth curve BEFORE you take investment. It opens a lot of doors.
3) Distribution wins, too. Have a GREAT story on how you're going to find users without spending a nickel. SEO and viral marketing win. Don't say "word of mouth", "PR", "blogosphere" unless you've proven that your startup has legs there.
Regarding, "outside SV"... It depends. Right outside? Or in the Yukon? Where are you?
If funding is the path you should follow, not living in a hub is making a REALLY hard game a LOT harder.
There seem to be a lot of people that think their projects somehow require funding. Your online social alarm clock is not a startup.
Stop imagining how you're going to make money off of crappy widgets. Get out there, be curious and build things that solve actual problems.
Amen. You have the makings of an engineering commencement speech in there.
I am no different then anyone in this forum. Just a regular guy with ideas who decided to startup from his room in Baltimore, MD.
As for our work ...There is a huge value in taking a 221 year old wake up device and injecting the Internet into it. Whether we wake up to social sounds(Happy Bday, get up meet me at gym) or intelligent sounds(wake up tornado, your plane is delayed (broadcast X is catching flight to X on network=social), it's Jane's Bday tomorrow (social)) our lives will be richer and safer! Maybe it seems that your friends can control the time you wake up... that is not the case! We are innovating the sound and waking you up during life threatening emergencies only!
If you are not interested personal wake up communication, that's cool!
Though since we responded we are curious as to who you are and have we spoken or met before offline?
Cheers, Ryan
i guess my unspoken point was to try and note that even if an idea kind of sounds stupid, there might be a good way to implement it to achieve success.
I am not attacking you or defending sleep.fm but since you brought it I thought you could share your views.
... or as Guy Kawasaki put it (http://www.changethis.com/1.ArtOfTheStart):
"GET GOING. Start creating and delivering your product or service. Think soldering irons, compilers, hammers, saws, and AutoCAD -— whatever tools you use to build products and services. Don't focus on pitching, writing, and planning."
i.e. make something first.
Hell I am 24 and I am not waiting for an investor to make my company a reality. If it fails, who cares, I got many years to try again :)
The hard part is building and getting noticed, once that happens the investment part is much easier. Truly great business ventures dont' always need lots of investment though, just enough to buy some time to build it or get it in production.
at 17/18, you can (most likely, i'm assuming) live with your parents or do the work in your dorms and not have to worry about making a living while starting your business.
find some time and just do it. worry about making money after you have something.
http://news.ycombinator.com/item?id=216614
A great way to get some real feedback is to make it, then post it as an Ask YC. The community really steps up to give credit and criticism where they are due. Take this recent thread on Dabbleboard as an example.
http://news.ycombinator.com/item?id=202798
Don't worry about making money right away. It's more important to see if the idea goes somewhere interesting.
Boston, NYC, Boulder, DC, Philadelphia.. all have current hot startups. There is money to be found too in these areas; more in the valley of course...
theres a bit of startup atmosphere here
Investors tend to invest in companies/people and less in ideas (unless the idea really is something revolutionary). Get your prototype in order, but also do a little business legwork. Are there competitors? Who is the market? What's the revenue potential? How are you going to market the idea?
Go for it, if you start now I guarantee you will have your life fixed by 35 yo.
A prototype might be enough to approach early-stage investors, mostly angels, and a live beta definitely is -- if either helps confirm a market exists, by demonstrating a compelling experience that attracts real use or a craving from a valuable market.
I think you're on the right track: build, build, build first. (Take up some programming yourself to help.) Use that experience to understand the interesting parts of the problem and test the concept either with representative customers or (best of all) real via-the-web users.
If you achieve accelerating adoption with users, or even hints of revenue. you have a good story to approach investors -- who exist everywhere, not just SV.
(Experienced folks can defer building a bit, because they can raise money based strictly on their proven abilities plus the intended market. But for young first-timers, proving-by-doing can offset that advantage quickly.)
Seriously dude just do it. You're young, fuck it. Asking if you can do it is foolish; people have no idea what you're capable of until you do something.