[alphagenerator]

Bill, I enjoyed this article a great deal.

Can you explain the basics behind your process for speaking to investors after demo day? Did you just compile a list of people to speak with, or was there networking involved at YC which led to the right people?

Sorry if this sounds basic. I've read a lot of articles, but the process of talking to investors still seems hazy to me.

[billclerico]

We took a hybrid approach.

First, we compiled a list of the best possible investors (for us, Max Levchin was on the list given his PayPal background) and found ways to get to them. (warm introduction is best, but not always possible)

We also were very open to meeting people along the way through recommendations. For example, one of my good friends Nils Johnson knew Eric Dunn very well and recommended that we talk given his deep payments background. This conversation was what ultimately catalyzed our seed round.

I think cold emails to investors rarely work. What you really want to do is build a network of folks who believe in you. Hopefully some of those folks have money to invest, and others who don't can help add new nodes to the network.

[alphagenerator]

The e-mail thing is the killer. Can you make recommendations for how to network with investors when someone is coming from outside Silicon Valley?

I too am in the finance space and my networks are concentrated in NY and Chicago. However, because I want to take a more product-centric approach initially, I feel like I should be talking to people in California instead. Just one problem: I don't know too many finance people in California.

Is the short answer to just fly out there and do my best to network within the span of a few months?

[billclerico]

I don't really like the word "network" as a verb. It implies that you are trying to schmooze your way into getting people to like you at cocktail parties. (I'm not saying you are, I'm just saying that's what the term implies to me) I don't think that's an effective strategy.

What I might recommend is spending a few months out here building some real relationships with smart people who are genuinely interested in your business. If you've got a quality concept & product, then good people will take notice. But it's a long process, measured in many months (maybe a year).

Note that YC is probably the most effective way to short circuit this, since it provides a strong signal of quality and helps open a ton of doors - but most importantly it gives you a large, smart & well connected peer group with whom to build relationships with.

[alphagenerator]

Thanks for the wisdom. I appreciate it.