[xg]

I think the biggest qualification factor of a cash flow positive business mitigates quite a bit of risk (as long as there's some minimum bar of >= $50k / year).

The part that's tough is: what's the use of raising additional capital?

Is it to go full time on the product? Is it for marketing?

[dwightgunning]

Positive cash flow is a great indicator although with early-stage companies that haven't achieved meaningful scale or been in the game very long it still seems a tricky sell. That said I like the idea and hope the model proves success for people.

Sidenote: is $50k/year a generally accepted figure or were you just demonstrating the point?