A solid prototype allows you to receive feedback and determine how feasible your idea is. After you determine the feasibility of your product, you can go to investors and receive funding as you have lowered the risk of their investment. With a proven working prototype, this increases the chance of funding. By also taking advantage of rapid prototyping, there can be several iterations of a product and determine which approach performs the best.
The Benefits of Prototyping
Prototypes allow you to fail early and inexpensively while also gathering more accurate requirements. There is also a risk of your product running into failure whenever it is at the final stage of production, however, prototypes mitigate the risk because they allow you to filter through the requirements that work and the ones that do. These prototypes allow you to technically understand the problem and address both the foreseen and unforeseen problems and find solutions.