Family, Friends, Angels

If family members or friends are not an option for securing a small business loan, consider talking with an angel. Angels are investors who are often willing to fund ventures that are too risky for banks or potentially not profitable enough for venture capitalists. Nevertheless, angels are still primarily motivated by a return on their investment. Angel investors are typically more interested in a business's founders and management team than other investors. While angels, like other investors, will want to cash out of their investment after a set period of time, that timeframe tends to be longer, typically five to seven years, compared to two to four years for venture capitalists. Angels can also be a good source of advice.