Investors who are in the venture capital funding game will usually invest anywhere between $500k to several million dollars in a startup or established small business. These folks are serious full-time investors and demand a much larger share and much more control over your business than any other group. However, they'll also rally around you to do as much as possible (provide contacts, etc) to ensure that the business succeeds and they see a handsome return on their investment.

Most VCs tend to focus their venture capital funding on businesses in high growth and high return industries such as bio-tech, and Internet businesses. They'll invest in a wide range of other industries as well, but your not as likely to see VCs tossing much funding toward more mature, although often high-growth, businesses such as real estate investing.

Let's face it, venture capital funding may not be the right option for your situation. Take a look at the other sources of funding below to get a better sense for whether or not this is the case.

Other Business Funding Options

Business funding comes in all shapes and sizes and your situation and capital needs may not be the same as the next guy's. But, if you have a rough idea on the amount of business funding that you need and the type of investment partner that you'd like to have, you're in good shape. You can use some guidelines as a general rule to match yourself up with one of the primary sources of business funding below:

Friends, family and fools

This is your closest group of contacts and therefore the easiest place to find money for your startup venture. This is a great group to approach if you're looking for ten to twenty thousand dollars or less in startup capital. Many people find it hard to raise much more than this, but it's not incredibly uncommon for an entrepreneur to raise several hundred thousand dollars from family and close friends. This group will be the easiest to persuade for investment and they'll want the least amount of control over the business. However, if the deal goes south, you might have just lost some of your most important relationships in life.

Angel Investors

Angel investors are individuals who invest their own private capital into startups and small businesses. You can find and contact these individuals directly on Invstor.com. Angels typically invest $500k or less into a business and are a great resource if you can't or don't want to round up money through your friends and family. Angels will demand and larger share and more control over the business than your friends and family, but there's less risk in losing a close relationship if the business goes under.

Banks

Many entrepreneurs opt for a personal loan from a bank to help fund their new venture. The downside to this, of course, is that you are liable to repay this loan even if your business fails. This isn't the case with the other groups of investors mentioned above. Alternatively, you can also try for a small business loan, but you'll need a convincing business plan and will often need to prove that you already have paying customers.

Summary
	VCs invest in very high growth/high return opportunities that are typically found in less mature industries. Venture capital funding isn't appropriate for every business. There are many other sources of funding that may be a better option for your particular situation.