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Where are you based? This will have a large impact on your next steps.
Don't cold call VCs, that isn't the way to go. Go through your network. Maybe even leveraging the network of your clients, if you have a good enough relationship with them. Do a bit of research into the VCs/Angels in your area. Find out who they are, what sorts of businesses they like.
Get on angellist. Build a network there.
Talk to people. Keep working.
If you've got B2B customers and money coming in, focus on that. For most companies, that is more important than raising a first round of funding, assuming you can continue to bootstrap. The more money you have coming in and the longer you go without, the better leverage you'll have with investors, and possibly an easier conversation. You say you need the money to scale and grow quickly, but are you sure you need to scale and grow quickly? There are definitely some businesses that do need this, but not all. It's easy to get caught up in the excitement and think 'I need money to scale', but what specifically do you need the money to do? Hardware is so cheap at the moment, and you're a developer, so those costs are minor. If you think you need money to scale with marketing, you don't at this stage. Wait a month, or two. I've started the fundraising dance, and worked for a VC on a few of their start-ups, and I can tell you that it is very time consuming. As far as getting a co-founder, everybody says to do it, but that isn't so easy either. Start looking. Basically, my advice would be to network as much as possible, and get as much advice and help as you can. See what you can do with favours and such, without going for funding right away. See if you can build your business to 10,000 a month. That may mean getting somebody to help you out, and that may mean sharing equity with that person. It doesn't necessarily mean they are a co-founder. Co-founders and employees are very different animals. Congrats on taking the first promising steps with your new venture. Best of luck. |
What worked for me is to contact friends who are now in a very good finantial position. I have a high school friend and 3 years ago, when I was starting with this startup thing, he told me that he would like to listen to my ideas if one day I needed investment. So, now I need, I am ready to make an investment worthy, so I went to him, he liked the idea and he said yes!
He is not "smart money", and not connected at all with the rest of the market or the VCs. But is someone I can trust, smart and have the money (he is investment banking). Good enough for me.
But even if this works, by all means keep creating this network with VCs, successfull founders and mentors.
Also, you didn't apply to YC because you thought you didn't fit the demographics?!?! WTF?!?! You are quiting a job to do something with very low chances of success and is influenced by stupid myth? C'mon! Apply first, raise doubts later!