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Technology entrepreneurs often have great ideas, but are short of a critical resource: the money to bring their product or service to market.

Creating a business that can grow organically or taking an existing small business to the next level is expensive.

But unless you're taking straight debt financing, from a bank, for example, there's more to a business partnership than just money. But how does a startup find potential partners? And how do they know they're the right fit?

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Calling all Angels

Often, the initial funding for a startup comes from friends and family – “love money,” as Scott MacCannell, president and director of York Angel Investors Inc., calls it.

“Angel investment is really what gets these early companies going,” MacCannell says. The next step up the ladder is the angel investment group -- experienced angel investors who apply a lot of criteria to potential investments, using their collective wisdom to determine whether risk of a business with a good upside can be managed, MacCannell says.

“These are the people who have done what the entrepreneur is trying to do, MacCannell says. And it only starts with the money. They're coaches, sounding boards, and co-managers, too. A simple debt partner “is not going to ride with you on a key presentation.”

Tough economic times are giving angel investment a higher profile, as venture capital companies tighten purse strings and angel groups fill the void in the lower end of that market. But still, “this whole angel business is unknown to many people,” MacCannell says.

And they can be difficult to find.

Individual angel investors don't tend to advertize, though the groups can be located on the Internet. And the National Angel Capital Organization organizes national and regional conferences, where pre-screened entrepreneurs get a chance to present to representatives of angel groups.

Now you've connected with potential partners. How do you get the right fit?

Deal from a position of strength

Have options. You don't want to be in a position where you have to do a deal; you want to be in a position where you want to do a deal, says Bill Snider, chief financial officer of Blue Cat Networks. The Toronto-based Internet protocol address management (IPAM) company has been through two rounds of financing since its self-financed launch in 2001.

For BlueCat's 2006 and 2009 rounds of financing, the company had a proven product, proven market and proven organic growth. But there are other ways to create that position of strength.

“You have to believe in your ability to succeed,” says Snider. Back that up with a complete, fleshed-out strategic plan, not just cash-flow projections. Who are you hiring? When and why? Does that match up with your spending projections?

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