Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

5 of 8
Venture capitalists
Pros: They've got a lot of money. Like bankers, venture capitalists aren't handing out money from their own wallets, so you can seek much larger amounts that you would get from a bank loan - if you can find a VC firm that specializes in your industry.

Cons: It could be a waste of time. VCs take only a handful of promising companies and will scrutinize your venture as thoroughly as banks will.

"Time for a sanity check," Siegel says. "Not everyone is a viable VC prospect. You're looking at some very expensive capital. They deal with higher-risk ventures, and so they deserve a higher reward." Be prepared to surrender partial ownership of your company if you score a deal.

NEXT: Angels

LAST UPDATE: Sep 30 2008 | 11:23 AM ET
Sponsored by
More Galleries
5 startups that are reimagining the world Bricks that grow from microorganisms, household garbage turned into art, three-wheeled bike-cars -- these startups are redefining urban living. More
Blue collar entrepreneurs These five entrepreneurs took their blue collar experience and used it to launch innovative businesses. More
7 lifehacks to eliminate your holiday hassle Whether curating the perfect gift or finding a pet-sitter, these startups offer time-saving services that might just seem like holiday magic. More