Consider also the option of getting funding from a first customer. Many, many people have signed a contract on the basis of a napkin pitch before -- for example, approximately every consulting engagement ever. You can even sell the same napkin to multiple people in parallel. You can then take the contracts or memorandums of understanding to a bank and say "Hey, these represent money in the future, can we have money today?" and have that happen.<p>I apologize to all the business guys who are looking at me in slack-jawed amazement right now but they don't teach this stuff in engineering school.
"Many banks, such as Bank of America and Wells Fargo, have recently announced increased commitment to small business."<p>Hah! Nice one. Yeah, I once walked into a BOA branch myself and asked about start up funding, me being a long time customer, bills all paid on time, and a decent amount of funds in savings accounts there, surely they would consider helping me start a business, right? HA HA HA!!!<p>The deal is you have to be an established business that has already been banking with BOA with for <i>at least two years as a business</i> before they consider granting you any type of business loan. Without that you can have a free lollipop from the bowl and then get the hell out.
One other thing not often thought of. Capital is expensive. Not only do you lose some control when you take capital, you now have a responsibility to investors. Many seem to, in my experience (take that as you will), jump in acting like it's free money. Raising capital isn't the end goal. It's just the beginning. With a more traditional fund with actual customers approach, it's reasonable to do business as you'd like (obviously this invokes a debate of a startup vs a life style business) but with customer funding, you not only have validation, but you can always raise a more favorable round later. Github is one very good example of this. In the end, cash is king.