Lessons Learned: How to raise the initial VC round

When it comes to consumer Internet sites, the best thing an entrepreneur can do is go out to friends and family and build a prototype, or proof of concept. That's exactly what online travel site Nile Guide did. And, it's paid off. In this segment of "Lessons for entrepreneurs," Nile Guide CEO and founder Josh Steinitz, who was a former marketing executive at Cendant and in business development at Away.com, laid out the steps he took to get his travel site off the ground. In many ways, it's a textbook process - raise money from friends and family to get the initial alpha, or proof of concept off the ground. Afterward, without "proof of market," get a distribution deal to validate your product. Finally, "have good responses" to the many questions venture capitalists will grill you on.