Currently, the VC business is in a funk due to the bad exit environment and general economic uncertainty. So unless you have at least one successful startup under your belt or you've really, truly built a better mousetrap, I wouldn't spend a lot of time on this option.

Angel investors, who have been the source of NewWest.Net's funding, are far more diverse in their interests and motivations. Friends and family—that proverbial rich uncle—are a good place to start, but you'll be much better off if you can find some other sources as well.

Former colleagues or mentors can often be excellent prospects; good angels are usually invested in you as much as in your business plan. I've also found that angels are very sensitive to who else is a part of the deal, so if you can get one person with a good reputation to sign on, it will be a much easier road from there. A pretty common level of commitment for an experienced angel investor is $25,000 to $50,000, though some angels will do as much as several hundred thousand.

I've always been a little skeptical of the many angel investor clubs out there; they often put you through a lot of hoops and are looking for VC-type deal dynamics even though they're putting up far less money. Some even make you pay money to apply for funding, which I don't think is appropriate. In my view, angel investments are really about your personal relationships, for better or for worse.

If you're raising money to buy hard assets, conventional business loans can be a good way to go. Banks might be reluctant to lend to small businesses, but it's amazing how fast that reluctance goes away if there is collateral. Equipment purchases, and things like liquor licenses, are often fairly easy to finance, though, of course, pay close attention to the terms.

In the absence of hard assets—my company, and most Internet companies, are great examples of businesses that lack such assets—it's a different story. If you have good personal credit, banks and credit card companies will usually front you some money if you personally co-sign, though as I've written before, that can be a devil's bargain.