These investors don't usually get too involved in the company, and their capital infusion is often a one-time shot. If you can win their attention and time, these individuals will often sit down with you at a cozy restaurant and ask you to explain your business plan. These types are most often caught up in the entrepreneur's raw energy and enthusiasm and don't fight very hard over valuation. But, while you may not have to fork over huge piles of equity, you may spend a lot of time listening to ideas that aren't so hot. Beware of this, says Seattle venture capitalist Nancy Isely-Fletcher.
Some incubators help with business plans or specialize in specific technologies or the Internet.
These are the representatives of small, informal venture funds. In an effort to keep the number of deals under consideration manageable, they create hoops for entrepreneurs to jump through. Some may want a haiku one-page summary of your business plan. Some want a 50-page exegesis of your marketing strategy. Unfortunately, jumping through these hoops eats up time, and may prove fruitless.