Assume that you have been working on a first-generation “prototype” for a new product. An angel investor is “waiting in the wings,” wanting to invest in a second-generation model or prototype. Unfortunately, you have run out of money and aren’t able to finish the initial prototype. The business angel has previously said that she would “walk” if you cannot produce a working first-generation prototype.

A. What would you attempt to do to save your entrepreneurial venture?

B. Now let’s assume that the angel investor will advance you the financing needed for the second-generation prototype based on your “word” that the first generation prototype has been completed and is working? What would you do?