For raw startup and most pre-revenue companies, the most common first sources of funding are personal savings, bank loans, credit cards, equipment leasing deals or help from close friends and family members.
But where do hard working, great idea entrepreneurs go if they don't have any personal savings, generous friends or a great credit history to help get loans? How about soliciting funds from wealthy individuals who are often called "angel" investors in the venture community?
Whereas friends and family investors tend to make investments in entrepreneurial companies as a gesture of personal support; angels and venture capital funds invest strictly for financial gain. Their ideal target is to support management in its quest to multiply the value of a company – big time!
What are some other attributes of angel investors? They like to invest locally, usually in companies that are located within 200 miles of their home base. Angels can be local business professionals like lawyers and accountants, retired executives, vendors who want to participate in your business success, other highly successful entrepreneurs, and more. While you may not know these people today, you can learn how to meet with them and work with them.