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I’m sorry but isn’t selling vaporware pretty much what tech companies do in general? Sell products before they are GA.
There's a difference between selling something that's nearly ready, but still in development VS flat out vaporware. This one sounds in the middle---so long as the prototype can be made into a POC MVP for a customer, they'll be OK.
BUT I agree with @OP, that they could take it more incrementally to de-risk the rollout and GTM
Yes it’s common