SmallBusinessNewz

For startups, 2010 brings a whole new era to fund-raising. While the economic crisis appears to be subsiding, it is still a long way from being completely over. Fortunately for entrepreneurs, there is still money out there. The caveat however, is that their approach in obtaining funding has changed.

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As pointed out in the above video, some of the traditional methods for raising capital are still effective, but some are not. For instance and contrary to many beliefs, angel investors are still investing. Although the amounts may be smaller, angels are still a means for funding.

One area that doesn't look very hopeful for 2010 is venture capital funds. The VC industry was hit hard by the recession. Some top VC funds will continue to invest, but they will be geared mostly toward industry-specific niches.

On the startup side, a business could stand a better chance of receiving funding if it is associated with a social cause. Historically, nonprofits or charities primarily backed social causes. But since issues such as clean technology, green efforts, education, and economic development are so important right now, businesses that integrate these ideas stand a better chance of getting funded.

Although conventional methods such as loans from friends or family, tapping into savings, and incubators may still work this year, the best advice SBN can offer is to think of a way to give your business an edge. If you reach this point, you might not have any trouble getting the funding you need.