Self-Funding

When Elena Bajic launched her online executive-matching company, IvyExec.com, in 2007, she self-funded it. Things worked out so well, she advises other entrepreneurs to avoid venture capital and rely on the traditional trio of "friends, family and angels" when raising capital.

 But how do you keep those investors happy? Here are Elena's tips:

Send quarterly reports.  It’s critical to keep investors updated.

Be transparent.  “Don’t hide anything,” Elena says.  “It’s better to be up front with both the bad and the good.”

Have skin in the game: “You must be willing to sacrifice and show your commitment to investors.”