Startup Funding: The Fund-Raising Game Has Changed - 7 Ways To Raise Money For Your Business In 2012 | Online Business Models |

From the article intro: "Startup funds will be harder to come by in 2012, according to hundreds of venture capitalists polled in a recent survey by the National Venture Capital Association.


In spite of the gloomy funding forecasts, there's still hope for entrepreneurs in need of cash in 2012.

In fact, small-business financing options outside the venture capital industry are rapidly proliferating in the digital age.

With just a few clicks, anyone can pitch a business idea to the growing ranks of angel investors.

In addition, a number of Web services now provide platforms for entrepreneurs to raise small sums of money from large pools of people -- a process known as crowdfunding.

Even Congress is showing deference toward the Internet's capacity to connect businesses with capital, as lawmakers weigh rule-changes that would allow entrepreneurs to use social networks to sell stakes in their startups. (Under current securities law, entrepreneurs can only solicit donations.)

Still, a large share of startup funds continues to flow from the old-fashioned lender that small-business owners love to hate: banks.


So regardless of whether you run a tech startup on the hunt for strategic Silicon Valley investors or you own a local restaurant that's in need of nothing more than a simple bank loan, entrepreneurs must recognize that in the new year, the fund-raising game has changed."

Here are the new ways to raise in 2012:

1. Banks

2. Crowdfunding

3. Contest and Accelerator Programs

4. Online Pawn Shops

5. Friends and Family

6. Angel List

7. Revenue-Based Financing

Fibd out more: