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
7 hot businesses to start now It's hard to predict what businesses will take off, but these startup ideas have been drawing tons of interest from entrepreneurs and their customers on Thumbtack.com. More
How will a minimum wage hike hit businesses? Thirteen states increased the minimum wage on Jan. 1, and President Obama supports raising the federal rate to $10.10. 4 small business owners weigh in on how an increase would affect them. More
America's favorite businesses From a science camp for girls to a kombucha brewer, communities around the country voted on their favorite small businesses. These 12 came out on top, each scoring a $250,000 grant from Chase and a trip to Google's headquarters. More
Sponsors

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.