Even if a VC is enthusiastic about a start-up, the structure of the investment must fit the VC's company profile or the firm will be unlikely to invest. The amount of money being sought. The stage of company development. The projected timing of the company's eventual liquidity and other financial issues. The most traditional form of debt is a bank loan.
Many entrepreneurs also use credit cards to finance their early work.
Industry gurus familiar with an entrepreneur's particular field can be helpful as investors, especially at the early stages when start-ups need only small amounts of funding. However, angels may not have personal time to help build the business, and they may not necessarily plan to invest over several rounds of financing. Corporate investment can be a positive step toward the start-up's eventual liquidity, but can also discourage other potential buyers. If the start-up's product solves a problem for a customer, the customer may feel motivated to help fund the company. This can create credibility in the marketplace, but may lead to competitive problems for the start-up when it tries to enlist additional customers.