But for several months McAtee has doggedly pursued other funding sources for his client. A Sacramento organization, Woman Inc., helps women entrepreneurs grow businesses, and its Southern California affiliate, Women on the Rise, recently expressed interest in possibly financing the small cosmetics company. McAtee and consultants like him may prove a good investment for company owners on the brink of expanding. With contacts developed over years in the business world, they know how to seek out some less conventional sources of capital. Many entrepreneurs don't know much about venture capitalists or angels, for example.
Angels are another frequently overlooked reservoir of capital.
People who have wealth to invest and either know business or have brokers who do qualify as angels in the business world. They seek out companies who use their capital to make more money, and frequently are saviors of the established small business entrepreneur. While they may not necessarily give a hand any quicker than a bank, angels can be more benevolent in the terms of control and payback they negotiate with an owner. As a help to businesses and angels looking to connect, the U.S. Small Business Administration's Office of Advocacy and the Defense Department recently announced they would set up an online matchmaking service. Would-be angels can sign up for the Angel Capital Electronic Network and receive a password so they can look at the names and financial statements of hopeful enterprises.