[ceonyc]

Part of the problem is that pitching VCs and investors is a well documented process these days. It feels easier. Plus, you're selling a dream/spin/hope/promise... and that you believe in. Taking money for a product means you believe the product is worth it--and often times entrepreneurs see how bad the product might be in the early stages, and feel hesitant to ask for money for it. They might just assume it's at a state where no one one would actually pay. Also, asking for revenue and getting a no means it's just not working--and that's scarier than asking for investor money, getting a no, and just assuming that guy just "didn't get it".