AI Startup Blueprint
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Module 3: Validation

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Validation

Getting your product idea validated:

Validate your idea as quickly as possible to raise funds.
This will give confidence to investors, and ensure you’re actually building something that people want.
The best form of validation is obtaining written, or at the very least verbal Letters of Intent (LOIs) from potential customers.
Having customers significantly changes the conversation with investors, reducing their doubts and focusing on what you have accomplished rather than hypotheticals.
It is much harder to back up hypothetical situations without metrics or tangible evidence.
Having your customers will provide you with the hard evidence you need in your conversations with VCs.

Additional ways to validate:

Assessing competitors in the market:
Pros: If there are competitors this means there is a market for you .Competitors validate the existence of a market for your product.
Cons: they are your competitors, but also every market has competitors
You need to find out how big is the market? You need to understand this market very well if there are competitors, so you can provide a better version of what they offer!
Asking VCs directly:
Ask them straight up- “what would you invest in?”
Inquire about what types of ideas or startups they would invest in.
Their responses can provide valuable insights into market demand.
They know the spaces they are looking to invest in.
Example: “This company I worked with were not having good traction and having a difficult time getting funding, then they asked the VC these questionm and now their company is worth $15-20 million!
Accelerators like Y Combinator (YC):
YC and similar accelerators specify what types of startups they are willing to fund, indicating viable business opportunities

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