The only place for good talent is other companies.
How are you finding technical talent without recruiting people out of other companies?
Plenty of very talented, passionate and enthusiastic people are being passed over because they did not know fact X or fact Y, or because some employers are mistakenly searching for previous direct experience with a specific technology when really it makes more sense to be looking for smart, enthusiastic, bright people who know how to learn stuff. I will assume you are a software developer - did you ever need to learn anything new? Was there ever a time when you did not know everything that you currently know? The answer is of course, yes. What then propelled you to your current position of knowledge and experience? Probably your passion and energy and curiosity and willingness to learn. These are the most important traits and employers should be willing to trade experience with specific things for these traits.
Good point, though.
I made the assumption he was already milking traditional recruiting channels (monster.com) without any success.
However, I'd guess most people who are using traditional recruiting channels aren't going to be in a financial position to work for a bootstrapped startup. It would only be people currently employed and looking for another job that would be eligible.
Have you actually found startup talent for bootstrapped startups using traditional recruiting methods?
Yes, I do this all the time and have found many great people for startups. It is a fallacy that great people are not looking for work through traditional methods such as job boards. Many people seem to think you can only recruit them via social networking or poaching or something.
Did you connect with Lloyd? It sounds like he could use your services.
Bootstrapping your startup: $40k
MBA in a monkey suit trying to recruit developers: PRICELESS!!