If you plan to grow the company to over $100m in annual revenues and want to raise at least $750k now, go to VCs; if either of those is false you should raise money from angels.<p>I wouldn't worry at this stage about how favorable the terms might be.  That's sort of like thinking about what to have as a snack when you get to the top of Everest.  It's very hard to convince investors to give you money, and VCs especially.  VCs invest in less than 1% of the companies that approach them.  So the first order of business is to convince anyone to invest in you at all.  After you do that you can optimize the terms.