ok, so we're a new c-corporation out of north carolina, three new unc mba graduates with a fourth ruby coder out in pasadena. we have a hotmail-sized concept with a working prototype already built. it's addictive, the kids are going to love it (parents too). all we want to do is hire ourselves and knock the project into beta. we also know that if we launch and gain x users right out of the gate, we will be able to get a better deal from investors.

questions = what is x? how many users does a hot new web 2.0 service need before jaded vc's start paying attention? what are the other eye openers in your opinion? until i read this article, i had been of the point of view that you should turn down all investment until you launch if at all possible. is that correct or am i wrong?

- Srini