It"s no surprise that the capital markets have been running low for entrepreneurs wishing to take their business to the next level with a fresh infusion of cash. According to the University of New Hampshire Center for Venture Research, angel investments in the first half of 2009 were over $9 billion, a drop of 27 percent from the first half of 2008. Venture capital fared no better with only $5 billion in the third quarter, a 6% decrease from the second quarter of the year. The upside is while the total value of angel investing has dropped the number of deals has increased.

The news is less promising for start ups. In the first half of 2009, angel investors have decreased their start up investing, with 27 percent of angel investments in the seed and start-up stage, a decrease of 19 percent over the same period in 2008. This simply boils down to risk.

Investors are less likely to put money into a business early when the risks are greatest. Early stage companies are best to look for funds from family and friends or there is always the "reality VC" route by attempting to get on venture reality shows such as Shark Tank or Dragon"s Den.

Finding Venture Capital or Angel Investors originally appeared on About.com Small Business Information on Monday, November 9th, 2009 at 10:46:32.

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