Many folks that would like to start a business, or expand their business into something great will go and look for a venture capitalist, or an angel investor. Especially when they find out that they can’t get all the money they need from a local bank because they don’t have the collateral to put up. This often happens when an entrepreneur has every single dollar he has/had invested in his own company already. From a risk reward standpoint, and considering the way that bankers do business, often entrepreneurs get frustrated, and they turn to other sources.