Need $10,000? $50,000? $250,000? - finding the right source for cash for a small business - includes a related article on a case study of a business obtaining financing - Cover Story

Home Office Computing, Sept, 1992 by Linda Stern

The MAT Venture Capital Network in Boston, Massachusetts ([617] 253-7163), boasts a comprehensive list of would-be angels and will match businesses with potential partners on the basis of geography, industry, and other factors. You pay $250 for one year's service.

THE BIG LEAGUES:

$250,000 PLUS

Looking for more than a quarter of a million dollars puts you in traditional venture-capital territory, which is not exactly good news in these days of depleted venture-capital funds. Returns in the venture-capital industry are cyclical, notes Robert Mast, vice president of Venture Economics Information Services in Newark, New Jersey. And while the industry has hit the bottom of its cycle and is on the way back up, funding is well under the peak levels of four years ago. If you want to try a technical approach to finding venture capital, consider buying software from AI Research Corporation in Mountain View, California ([415] 852-9140; [800] 2527080). Their VenCap Data Quest 2.0 ($90, for IBM compatibles) is a database of venture-capital funds sorted by eastern or western regions: You get about 300 names on each disk and can sort for investment levels, preferred industries, and a series of other criteria.

If you've built your company to these peak levels and are still hunting for funds, you can consider a private placement of stock or find an investment bank to steer you through an initial public offering.

Alternatively, you can sell your business, take all the cash, and start a second career as an angel, helping all the businesses further down the food chain.

ELIZABETH KADETSKY is a writer living in New York City. She communes with the past on her Mac 512Ke.