There are various types of investors – namely, venture capitalist and angel investors. Venture capitalists normally seek to invest in innovative firms, and often are prepared to lay out millions of dollars at a time. Angel investors are normally wealthy individuals looking for a return on investment, and will often form a closer relationship with the concerned business. Both venture capitalists and angel investors will require the entrepreneur to come up with a business plan and projected revenue table before an approach is made. Investors will normally require that they have some influence over the business — usually in the form of a decision-making ability. Most of the time, the principal funds invested do not need to be repaid unless the business is sold.
Nowadays, with current information technology there are various ways to connect with investors. An example of one of these is prosper.com, where you can network with investors that may be interested to work for you based on your business vision and reputation.