Many people in 1999 and early 2000 invested more in the dot-com name than in the company's product. Unfortunately, many lost thousands in the process.
Every new business starts with a vision.
The development team often creates the vision for the product. The first challenge is to access financing to produce it. Developers access seed money from someone who personally knows the team. Developers attract the attention of an investor who buys into the vision. During the vision phase, investing small amounts of money in several ventures may prove profitable, since one of the visions may become a product.