What should be the next step after preparing for a startup plan? originally appeared on Quora: the place to gain and share knowledge, empowering people to learn from others and better understand the world.
If you can first raise a small amount of capital that you can afford to lose, build a team that believes in you, build a product and test your conviction. If you've hit this mini milestone, its easier to build the mojo you need to go and pitch to institutional investors or even a larger group of angels.
If that can't be done, you need to have believers in your network - either Friends and Family (and/or "Fools") who will give you the capital to get started or get connected by people who vouch for you to a seed fund or an angel network. These people are making an emotional decision to invest or recommend you basis their past connections with you but a lot of the time, that's the only way for a first time founder to get started (serial entrepreneurs who've returned some capital to themselves or their investors in the past have it incredibly easy relatively speaking since this first bit of seed money is usually coming in easily from the past set of investors)
If you go in cold for seed funding to any group of angels or an institutional investors, I would argue that your chances are close to Nil on getting funded. Its too competitive at this early stage now for you to get an audience without being filtered by someone they can trust.
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