I agree that they're probably screwed--on top of the normal how-do-you-get-enough-people-to-switch-that-users-get-real-utility-out-of-the-social-network issue, people now expect, by virtue of the fact that they've got $170k and lots of attention, that they have something ready to compete with Facebook by the end of the summer--but I don't think they would have done any better waiting.<p>By doing it this way, they got to strike while the iron was hot. Right as Open Graph and the dozens of "Facebook is pure evil" posts were fresh in people's minds, they asked for money. With startups, the best time to raise money is when people badly want to give it to you, and it's no different here. If they had waited a few months, not only might they have had trouble paying their living expenses for the summer and their tuition bills in the fall, but they also, had they asked for donations after a summer of getting a crude v1 together, would have had a much harder time getting the money because Facebook privacy concerns wouldn't be as strongly in people's minds as they are now. Do you think they'd get anywhere near $170k with a v1--which would be nowhere near ready to kill Facebook--but in a few months when most people don't care anymore? In fact, it's quite possible that having a crude version 1 today would get them less money. Right now, they're selling nothing but ideas, which are easy for anti-Facebookers to latch onto. If they had a rudimentary implementation, potentially donors would be thinking about all of the ways in which the product sucks, not all of the ways in which it could be great. By having no product to criticize, they get the donors to dream.<p>And at least this way, they're set financially. They'll still probably fail, but probabilistically, they were going to fail either way. This way, if they do manage to ignore the hype and get a great product built, they'll definitely have money when they need it.<p>Another way that this does help them is something PG has pointed to--fear of failure. If they were just friends hacking this thing together in their spare time, maybe they would have made some grand statements to a few friends and family members, but there'd be a pretty low barrier to saying, "oh, building something with Facebook's capabilities is extremely hard. And even if we do a decent job, we probably won't get any users. Let's go play video games." But now, they can't give up entirely. They have to at least build something that sort of gets the job done. Thousand of people gave them money to do so, so they have a duty to do it. And millions of people read the articles about Diaspora and will read about it again if they fail. If Diaspora becomes a joke, every potential employer of theirs will think of them as "the guys who failed miserably at building Diaspora." All of a sudden, failure comes with a very high cost.