Perhaps this will help people too...
If you have a small company that you are comfortable growing slowly and using to pay your bills then that is considered a 'life style' business. The sources of funds for those tends to be credit cards, friends and family, loans and micro finance.
If you have a small company which you would like to grow into a large business - where there is a real potential for significant growth but where you have only a few customers, an young product or service then angel funding from individuals or an angel group might be worth considering.
If you have a business with a few customers, a team of people who can drive it forward, in a space with real potential and have already proven the business model then early stage venture capital may be the answer.
The types of finance often align with the stage of the business - stage being determined by customer acceptance, consistent revenues, team members, growth and other factors.
Hope that helps. Let me know if you have follow up questions.
Andrew
http://www.TheFundingGuru.com
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Andrew
PS - Here's a free report on creating your startup success.
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