I know a number of entrepreneurs who live in places like my home town
-- Bozeman, Montana -- who have companies that are beginning to grow
rapidly and are starting to need growth capital beyond their limited
personal resources.  On the one hand, there aren't much in the way of
tangible assets in the business, so bank loans are out of the
question.  On the other hand, the businesses haven't yet reached the
stage where approaching a venture capitalist is really feasible. 
"Angel" investors are the obvious stop-gap, but it's tough to connect
with them in a timely way.  Sure, there are the typical "brown bags"
and online business plan submission routes, but those don't seem to
deliver much in the way of results.

What strategies are working for promising businesses seeking angel
funding and which are located in out of the mainstream places?

Hello Dave:

I am not sure if you are a tech company or not, but the following
website helps put companies an VC together and it is right in your
hometown, Bozeman.

http://www.techranch.org/index.html

“TechRanch works with start-up technology ventures that develop
software, bio-tech, Internet and other technology. Our mission is to
provide the best environment for the rapid and successful development
of technology based companies. “

“TechRanch sees many exciting applications and would like to extend
its services to all Montana businesses, however we must stick to the
admission criteria to fulfill our charter. We are a not-for-profit,
501(c)4 tax exempt corporation, contributions or gifts are not
deductible as charitable contributions for Federal income tax
purposes.”

Have you tried the Eastern Montana Angel Investor Network?

http://www.localfund.com/company/news/january_29_2002.htm

“Through the Eastern Montana Angel Investor Network, business plan
summaries may be presented online to accredited investors, as defined
by the Securities and Exchange Commission. Investors may then contact
the entrepreneurs directly and arrange for a face-to-face meeting. “



Entrepreneur Magazine offers a service where you can search for
wealthy investors by zip code or state. Unfortunately they charge you
per record returned. But you can try for free to see who in your area
has appropriate net worth.


“AngelSearchTM combs government records to gather investment data,
industry preferences and total stock positions of America's wealthiest
individuals, giving you unlimited access to valuable contact
information on potential angel investors, customers and clients. It's
an invaluable tool if you're trying to raise capital or find investors
or wealthy new customers in your area.”


http://www.entrepreneur.com/Tools/TL_Information/0,4679,299461,00.html

Have you thought about Direct Public Offerings?

“Appropriate for: Direct public offerings work better with established
companies, but they can also be used for start-up and emerging
companies. One of the most important characteristics a company should
possess for a successful direct public offering is a strong affinity
for its customers, the surrounding community or the industry in which
it does business. In a direct public offering, these affinity groups
become the company's shareholders. “

From:
http://www.entrepreneur.com/Your_Business/YB_SegArticle/0,4621,300884,00.html

Some people get financing from their suppliers like in this case:

http://www.inc.com/articles/finance/fin_manage/fin_plan/24242.html

“Financing also can come from deep-pocket corporations. Alisa Nessler
got $12 million in venture capital last December for her two-year-old
Austin, Texas, company, Lane 15 Software. Three of the eight investors
weren't venture-capital firms, however; they were investing arms of
Dell Computer Corp., Intel Corp. and Quanta Computer Inc., a Taiwanese
computer maker.”

Also from inc.com: http://www.inc.com/magazine/20020401/24052-2.html

Preferred-membership-interest investment is another avenue:

“In 1999, when Reddoch and a group of local angel investors were
trying to raise the $600,000 they needed to purchase Container
Technologies from its former owners, they approached SJF and asked for
help in reaching their goal. SJF, which has offices in Durham, N.C.,
and Philadelphia, made a $266,500 preferred-membership-interest
investment in Container Technologies in exchange for a 15%
nongoverning stake in the company. ("Preferred-membership interest"
indicates that SJF, as the biggest cash investor, receives the first
income and potential capital-appreciation returns that Container
Technologies sees. "Nongoverning" indicates that SJF has a nonvoting
interest in the company.)”

http://www.inc.com/articles/finance/capital/angel/23478.html

To get angel money, start to think like an angel investor, and then
present your company along those lines.

“So how do you go about getting financing from the newly sobered group
of angel investors? You need to think like an angel yourself. Approach
angels with a full understanding of what they like and don't like,
what they need and don't need, and how they make and sometimes lose
money.”

From:
http://www.inc.com/articles/finance/capital/angel/23478.html

Other links of interest:

The Montana SBA
http://www.sba.gov/mt/mtopportunities.html

http://www.library.cornell.edu/jgsm/library/faq/ent_vc.htm

http://www.eastsidejournal.com/sited/story/html/86811

I hope this helps you think “out side the box” for acquiring VC.
Please ask for a clarification if needed, I’ll be glad to help.


Regards,

Colin




Google search terms
angel investors
angel investors montana

To be fair, the answer reflected a good, but basic search of standard
Web resources.  For $20, it is a good value.  I learned what I wanted
to learn about the utility of the service.