Business Funding: From Venture Capital to Angel Investing

While the venture capital funding market isn’t as friendly as it once was, VCs still offer entrepreneurs an avenue for business funding. Couple that with angel investors and you have a couple of different financing options that can get your business off the ground and running.

Venture Capital is a New Ballgame
The CleanTeachies Blog waxes poetic about the early days of venture capital funding. $100 million in capital spread out over a handful of businesses at around $5 million each. The worst would be tossed and the best would manage a healthy return that would more than cover the initial investment. With the credit crunch placing a spin on everything, that business model no longer works. So venture capital funders are searching for a new model, which is causing them to be much more cautious.

Angel Investors Picking and Choosing
According to About Business and Finance, angel investors are still lending money--they’re just being much pickier about the business in which they invest. The key is a near bulletproof business plan that covers all of the bases. A good management team is also essential as investors need to feel comfortable in the leaders of the business--and their money.

If neither one of these financing options are attractive to you, Vendorseek suggests applying for a line of credit. More like a traditional loan, a line of credit allows you to only use the money that you need when you need it.