We entrepreneurs sometimes feel victorious after we have raised capital from family, friends, angels or VCs. But the pressure and the hard work are just beginning. You have to stretch those dollars until you get to cash flow positive, and it is always difficult to do so. The worst case scenario is to run out of cash before you have built the product or successfully sold it to real customers. Or you are just starting to get customers, but you can't afford to spend more money on sales and marketing to attract more.
A Business Week article (thanks John and Steve!) discusses that angel investors are banding together more often and investing larger amounts in less risky deals. The author mentions that more than 200 organized angel groups exist in the U.S. served by the Angel Capital Association. I like seeing the growth from the organized angel groups. FundingUniverse.com (one of our portfolio companies) helps by providing free online software (the DealFlow Suite) to help angel groups find quality business plans and growing companies that they want to learn more about.