The most important thing for a start-up is to select the right partners/investors, and going cap in hand during a depression isn't my idea of a recipe for success.
It's funny because the old tales about having a bank as a partner almost guaranteeing that you won't go broke certainly doesn't have an ounce of truth anymore. If your partner is a bank then you are more likely to go broke.
The is a lot of money out there looking for an investment and if our business is up to scratch we won't have any difficulty attracting funds once they realise the markets are not going to give the returns they once provided.
Even when developing a financial industry product it may not necessarily be strategic to get involved with financial industry investors.
Their current record in the judgment of investments is not one to be proud of anyway.
Perhaps they would best be avoided altogether for the moment and the last place you'll find any money at the moment is probably in a merchant bank.
Be wary of becoming part of a 'stable of VC investments' with any group which might seek to incorporate your business into another they already have. You must make sure you stick to your plan, not change it according to needs of the investor, unless ther are very strong and clearly identifiable benefits for your business.
If you have a good business model the money will find you, just use the web, blog, talk, publish and collaborate, but keep your key intellectual property to yourself as long as you can, and most importantly try and stay away from middlemen unless they have a proven track record with the parties you ultimately seek to engage.

If you have to take a shoestring deal simply make sure you get more than you think you need initially and ensure that further participation/shareholdings a totally dependent on whether you decide you need more money or not. ie if they give you a little, make sure they only get what they paid for and that the only way they can increase their holding is through further cash. If you manage to pull it off without the need for more cash then that's all the better for you and too bad for the investors.
Avoid any investor wanting a tiny percentage for a token amount, tokens won't get you acreoss the line unless there are a lot of them in your account, and never trust that an investor will come up with the next round of funding, as soon as you get the first start looking for other investors so you have a choice at your next stage. Do not wait till the last minute when you actually need the money, or when your existing investors may be short. The time to raise the money is when you don't need it.
Sun pulled a good one just before the crash and managed to get their hands on a lot of cash when they didn't really need it. Let's hope they have some left to get them through the depression.

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