We applied (and got rejected in the first round) from the U.C. Berkeley Business Plan competition first in spring of 2009, then again in the spring of 2010. We also got turned away from TechStars during Spring 2009. We also tried raising angel money in the summer of 2009 and couldn't get a single commitment.
It's not all fun and roses.
This kept us going for a while: http://www.paulgraham.com/die.html