Startup Funding: Getting Cash

Another factor can consider is the quality of the company's management and its previous work.

Even in the wake of a tech bubble in 2000 which saw venture capital decrease precipitously, those holding the purse strings were still looking for a company with a strong management team that could point to past success in a growing technology field, according to Steve Bird, general partner at VC firm Focus Ventures.

"The companies that do a better job explaining their revenue and high-quality customers are getting the funding they're looking for. Before, companies were focused on website hits and other odd measurement," said Bird in 2004 to PR marketing firm Blueshirt Group.

He noted that the onus was on prospective companies to do a better job of presenting themselves.

Finally, being able to sacrifice some equity in the company could be a deterrent for some but would be the perfect option for those looking for an an active investor. This could even mean that a company's founder could sacrifice a leadership position to enable the company to go on to greater success.