[mixmax]

I've had a similar experience that you may learn from.

In 96 I did my first startup, based on an algorithmic way of sorting links. Basically somewhere in between Google and del.icio.us. Me and my partner thought that Altavista, which at the time was the best search engine out there, fell short. We secured seed founding in the amount of ca. $100.000 and developed a working prototype of the technology. After this we needed venture capital to create and promote the product. This proved impossible to get. We talked to every VC out there, but the result was the same: "nobody needs another search engine", and "you can't make money on that" I was, however, convinced that the idea was sound so I carried on for almost 1½ years after funding ran out. In the end I had to give up.

It seems to me like you are in a similar situation.

Based on my experience what I think you should do is assess the situation seriously, and have someone you trust help you do this. When you're in the middle of it it is really hard to see the pitfalls and shortcomings of an idea. Look at what alternatives you have, try and write them down with pros and cons of each. Then take a decision. And do it.

Most important: Once you've made the decision don't look back.