6 of 8
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
Commuting is getting easier. Here's why The MobiPrize, conducted by SMART at the University of Michigan, recognizes innovation in global transportation. From microcars to auto rickshaws, these six startups are some of the standouts. More
A sampling of beers being made with traditional Latin flavors A small but growing number of craft breweries are including passion fruit, Mexican cinnamon and other traditional Latin flavors. More
Banks won't lend? Use these guys instead Banks often have exhaustive approval processes, high minimums, and flawless credit requirements. But there's a wealth of non-bank alternatives for those who need capital fast. Here are some of the leaders. More

Market indexes 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. 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.