Just received email to the effect that the funding deal we were hoping for has fallen through. Again.
I confess I'm rapidly losing faith - not to mention running out of money to keep the roof overhead.
We've been trying to get funded for about six months now, with a conspicuous lack of success. I freely admit that for part of the time we were simply not trying very hard: the deal on the table was too tempting for us. We were close enough to the investor that we had no need to draw up a very formal business plan for pitching (though we certainly did have an internal operational/development business plan) so we were pretty lackadaisical about the whole thing.
A couple of months into the negotiation it became apparent that the amount of money we were negotiating would be insufficient to get the business as far as "revenue generating", and the amount we would really require was more than the angel-group were willing to invest; "Too rich for our blood!" Fair and reasonable; indeed the right decision for all concerned, since we would otherwise be throwing money at a venture doomed before it started.
So we then had to spend considerable time working up a reasonable (I think!) "pitch" business plan for another angel investor. They're the ones who have turned us down this morning, and I can understand and sympathise with their reasons - essentially they feel that the market we wish to tackle is just too tough, and we are neophytes in the space. We agree. We've known it all along, and addressed those problems in our business plan, but evidently it wasn't enough to convince them to part with (about) USD 1million. That amount will get us about to public-Beta in a timespan of about 4 months.
So. Anybody know of an angel/venture group wanting to get into the social-web space in a venture that has real-world revenue streams (i.e. We're not planning on ad-revenue) in a USD45billion/year industry? (And Yes, that's a "b", not an "m".)