Did Mohr Davidow ask that question when they financed the first round of venture capital?
WH: Their first financing round was a seed round. They expected me to come up with the answer to that question before the next round. They wanted the germination of an idea. They made a bet that we would come up with something interesting, and they were prepared to lose money if we did not. SM: Today if you go out to raise money as a seed entrepreneur, they will try to figure that answer out before they give you money. VCs have become more conscious of total addressable market (TAM). WH: I agree with that. The bar has been raised. It is a very different situation from what it was thirteen years ago. The capital requirements for starting an Internet-based business today are significantly lower than they were at that time. The ability to get something off the ground and prove it is a viable idea can be done for less than $5,000. Seed round investors of today are like seed round investors of decades past. SM: Today, you can build a company to its full potential for very little money. You
