What We’ll Cover:
Raising too much money too early can trap founders in building something they don't believe in - crossing the "Rubicon" before having true conviction.
Implementation prototypes help validate key assumptions before committing major resources to a Minimum Viable Product or raising funds.
Chegg and Lyft provide excellent examples - Chegg tested pricing with a fake textbook rental site, while Lyft used TaskRabbit to simulate early rider demand.
Prototypes should answer three key questions: the What (specific value proposition), the Who (desperate customer segment), and the How (business model).
The goal is finding what customers are truly desperate for, not just interested in – which means we should value surprises even more than validation of existing assumptions.
The Point of No Return
When Julius Caesar led his army across the Rubicon River in 49 BC, he knew exactly what was at stake. Roman law forbade any general from crossing this boundary with an armed force – doing so was an act of treason punishable by death. As his legions approached the river's edge, Caesar reportedly declared "alea iacta est" – the die is cast. This wasn't a rash decision, but the culmination of years of careful political maneuvering and strategic preparation.
Today's founders face their own Rubicon moments, but many cross this metaphorical river without Caesar's level of preparation or conviction. Instead of a physical boundary, their Rubicon often takes the form of a seed funding round that was raised too easily. And unlike Caesar, who gathered intelligence and built unwavering support before his crossing, these founders often plunge past the point of no return before testing the waters.
When Fast Money Leads to Long Regrets
The world is awash in seed capital. The flood of money in the last decade is staggering - growing by nearly an order of magnitude from $3.2B in 2013 to $24.4B in 2022 in the US alone.1
Isn’t it good that founders have more money to test their ideas? Most of the time, it is.
But not always.
With so much cash flowing and so many seed investors, convincing someone to fund a bad idea is easier than ever. Most seed investors risk other people’s money while you risk your time. They don’t spend sleepless nights on your startup. That burden is yours. The result? Many founders unwittingly lock themselves into years of toil for ideas that might not deserve it. The abundance of capital lulls them into a false start. Only later do they see it wasn’t worth their precious time.
Paul Graham said it well in The 18 Mistakes That Kill Startups:
“Another of the characteristic mistakes of young founders is to go through the motions of starting a startup. They make up some plausible-sounding idea, raise money at a good valuation, rent a cool office, hire a bunch of people. From the outside that seems like what startups do. But the next step after rent a cool office and hire a bunch of people is: gradually realize how completely fucked they are, because while imitating all the outward forms of a startup they have neglected the one thing that's actually essential: making something people want.”
I’ve seen it happen over and over again. People rush to raise money before proving the strength of their idea or finding desperate true believers. With funding secured, they hire developers, rent an office, and build their MVP. It’s the standard playbook. Why not follow it?
But over time, many founders feel a trap closing in. They did everything right: agile development, talking to customers, using frameworks, building a culture, staying disciplined. Yet the most important thing is missing. Customers like the product, but they're not desperate for it. You keep searching for the winning answer. Then it hits you. Knowing what you know now, you wouldn't have started down this path. But how can you walk away? You've made promises—to your team, your investors, your customers, even yourself. You feel stuck.
This is the real failure in startups—not failing to succeed, but losing your time. Time spent chasing an idea that wasn’t worth it. Time wasted long after you knew it wasn’t right. Time is the one thing you can’t get back. And that’s the tragedy of it.
Prototypes Should Come Before Pitch Decks
Implementation prototypes offer a structured approach to testing ideas and building conviction before making irreversible commitments. This allows founders to validate their core assumptions while maintaining strategic flexibility.
Implementation prototypes are lightweight experiments that help validate your key assumptions—your inflections, your insights, and their direct connection to specific desperate customers—before committing significant resources. Unlike an MVP, these prototypes don’t have to be functional. Their purpose is to gauge interest and enthusiasm from early adopters, helping you identify whether your idea resonates with a well-understood target audience.
Implementation prototypes allow you to increase your conviction before crossing the Rubicon. You want to validate your inflections, insight, and implementation first. You are better off taking these steps before you set out to build a minimum viable product.
These prototypes help you answer critical questions:
The What: Did your specific value hypothesis unfold in the way you predicted?
The Who: Which customer segment is most desperate for the value?
The How: How much will they pay and what’s the best business model?
Implementation prototypes can take many forms to validate ideas quickly and effectively. For example, an interactive landing page can showcase your concept and track signups or clicks to measure interest. Targeted surveys help uncover customer pain points, refine your value proposition, and confirm alignment with their needs. Guerrilla experiments, such as offering a manual or simplified version of your service, allow you to test demand and understand customer expectations in a real-world context. It’s not about polish. It’s about proof.
Chegg’s Pivot to Textbook Rentals
In 2007, Chegg founders Osman Rashid and Aayush Phumbhra had a problem: their classifieds site for college students was burning cash, and Facebook had just entered the market.
With only four months of runway left, they desperately needed a new direction. They turned to an idea they’d brainstormed but shelved: textbook rentals. There was just one problem—they had no money to build a functional product. So, they improvised.
Textbookflix: A Prototype Born of Necessity
Chegg’s implementation prototype, called Textbookflix, was brilliantly simple: they offered textbook rentals at random prices between $35 and $75 to see what students were willing to pay. They didn’t build a payment system, warehouse, or inventory. In fact, when students tried to check out, they would land on an intentionally placed 404 error page, signaling the end of the test. There were no books—just a landing page and a concept.
The result? Students were willing to pay up to $75 to rent a $100 textbook. The demand was undeniable, even though the prototype itself was rudimentary. With this validation in hand, the founders were able to raise funding, build the real product, and ultimately create a textbook rental empire.
What Makes Implementation Prototypes Powerful?
They Generate Surprises: The best prototypes reveal insights you didn’t expect. For Chegg, it wasn’t just that students wanted textbook rentals—it was how much they were willing to pay.
They Minimize Risk: By keeping costs low, they allow you to pivot quickly without sinking resources into a failing idea.
They Attract Believers: Early prototypes provide tangible evidence of demand, helping you understand customers who are most excited about your concept, even in its roughest form. This early enthusiasm can also make it easier to attract investors down the line, as they see validation through customer interest.
Lyft: Simulating reality “just enough”
The goal when crafting an implementation prototype is to strike a balance between the effort put into the simulation and the kind of concrete feedback needed to gauge if your idea resonates strongly with potential early believers.
Take Lyft as an example. Simple online ads or landing pages weren’t enough to gauge rider and driver reactions. But founders Logan Green and John Zimmer wanted to know if people would be at ease sharing rides with strangers before releasing a product. They made a basic implementation prototype to bridge the gap. Initially, the founders and their friends drove, seeking firsthand feedback. Their cars wore giant pink mustaches, making them distinct and welcoming. To simulate rider demand before launching the official ride service, they used gig-working platforms like TaskRabbit to pay riders to gather genuine responses, refining the app based on feedback. While testing their implementation prototype, Lyft’s founders and their team directly experienced many early riders eagerly telling them, “You have to build this app.” It wasn’t just the words; it was the fervor behind them. The founders weren’t merely collecting feedback; they were witnessing a level of excitement and demand that gave them confidence they were onto something.
Avoiding Common Traps
Implementation prototypes are powerful but come with risks founders must manage:
Misinterpreting Feedback: Early feedback from limited groups can be misleading - test with enough potential early believers to accurately gauge true demand.
Confirmation Bias: Founders often build prototypes to confirm what they already hope is true. The best founders welcome the surprises more than the validation of what they think they already know.
Oversimplifying: Overly simplified prototypes don’t simulate a real enough solution for customers to desperately clamor for you to build it. For instance, a picture of a car on a webpage is not the same as standing beside a concept car, feeling its presence. For your particular situation, you need just enough reality to make it real—enough for the customer to know they desperately need it.
Incomplete Business Validation: Prototypes often focus on user interest but might ignore testing their willingness to pay.
Alerting Competitors: Prototypes can catch your competitors' attention, so it's best to test them quietly.
By anticipating these risks, founders can steer clear of costly mistakes.
What This Means for You
Caesar's crossing of the Rubicon changed history because he had:
Tested his assumptions (through years of political maneuvering)
Built true believers (loyal legions)
Understood the point of no return
Planned for what lay beyond the river
Before you raise money or build a minimum viable product, consider building an implementation prototype. Make it strong enough to test if your insight delivers real value—enough to make customers care and change their behavior. It should answer three key questions:
The What: What is the specific value hypothesis I am testing and does my implementation best deliver that value?
The Who: The precise customer segment that is most desperate for your value proposition.
The How: The business model and go-to-market strategy to deliver it
By using implementation prototypes, you can increase your conviction, refine your approach, and get closer to answering: What can we uniquely offer that people are desperate for?
The goal is to validate you have an undeniably great idea. Crossing the Rubicon without conviction risks building out of obligation, especially when early investor false positives fail to deliver the expected upside. As illustrated by these examples, this journey isn’t guided by set formulas or a step-by-step playbook; it requires finesse, adaptability, and on-the-spot creativity.
Your Rubicon of the future still flows and can be yours for the taking – but it's better to cross it like Caesar. He didn't cross his Rubicon on a whim; he did so with conviction born from tangible proof and careful consideration. It's better to embrace that deliberate approach, advancing with evidence-backed confidence, than to leap in too soon and be swept away by enthusiasm that's misplaced and exaggerated.
If you’ve seen great examples of implementation prototypes, especially recent ones, I’d love to hear about them. This is a subject I find really interesting.
And if you’ve made it this far, you deserve a Free Pattern Breakers book
On December 5th at 9 AM PT, Floodgate is teaming up with Deel and Global Founders Capital for a virtual panel on how startups can achieve breakthrough success. If you haven’t already got your copy of Pattern Breakers, this is your chance – as all attendees will receive a copy for free.
Deel COO Dan Westgarth, GFC partner Don Stalter, Floodgate partner Arjun Chopra, and I will discuss Deel’s journey to becoming one of the fastest-growing SaaS companies and how they may have unknowingly used elements of Pattern Breakers.
Register here: Event Link
I've read Pattern Breakers before, and this article’s structure reminded me of just how well the book is organized. It prompted me to revisit the sections on stress-testing inflections and insights, and I couldn’t help but appreciate the thoughtfulness behind showcasing the evolution of these ideas. It’s a great reflection of how the process of refining ideas works out in real world.
Mike - I really appreciate the language "implementation prototypes". Last week I got on a call with several entrepreneurs who wanted to talk about brand building. I run a brand consultancy and comms design firm. I found myself sharing this advice and just sent them a link to your piece. I hadn't read your piece first though, I was just conferring ethical advice from my own perspective. So thank you for the words to share. This is much more fulsome and authoritative than what I shared. One of my mentors is fond of touting LFI even over ROI - Learning From Investment. This is just what you are prescribing pre Rubicon.