6 of 8
BACKNEXT
Angels
Pros: Angel investors are wealthy individuals who invest at the very early stages of promising ventures. The typical angel is a business owner, so you can also get expertise and human capital from the deal.

"It's almost like the 3Fs [friends, family and fools], except that they don't know you," Siegel says. "Likewise, the process can move very quickly and there can be flexibility in the structure of the return." Also, there are dozens of angel groups across the nation to tap; the Angel Capital Association has details.

Cons: "They are wildcards," Siegel warns. "They have their own rulebook, because it's their own money."

"It is essential that the requirements of the deal are laid out before the angel invests," says CPA and business consultant Robert Chalfin. Also, as with venture capitalists, bringing in an angel means you'll have another shareholder in the company.

NEXT: Credit cards

LAST UPDATE: Sep 30 2008 | 11:23 AM ET
Sponsored by
More Galleries
San Francisco: The best city to make things From electric motorcycles to death shrouds, San Francisco's manufacturing sector is booming. More
6 designers shaking up fashion These designers are changing the way we dress, accessorize and shop, from custom made-to-fit dresses to smart jewelry that's actually stylish. More
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.