I've had the chance to talk to a number of entrepreneurs and "want to be" entrepreneurs.  Here are two things not to say if you want to really play in the startup game.

1. "An angel investor is going to want a larger chunk of our flesh than we are willing to give."
2. 'We don't want to talk to the VCs because we don't want to give away the company.'

I find these comments concerning, especially for those of us in "middle" markets.  In order to play in the big leagues, you've got have cash.  Not too much cash, but at least in the same range as your competitors in larger markets - or they'll just run you over!  And cash means either a) already having it yourself or b) finding quality investors who become your PARTNERS in building a successful business.

It is true that there are bad investors, just like there are bad entrepreneurs.  Which is why it behooves every entrepreneur to learn HOW to identify and close GOOD investors - those who support you, who want a fair valuation, and who will "be there" both in good times and bad times. Obviously the very best investors also can bring experience and advice to help you grow. 

Assuming that investors are adversaries is a quick way to get nowhere.  Assuming you have to be wise in identifying who/what you need from investors, then taking the TIME and EFFORT to identify them is how you will protect yourself from the bad investors - while finding those who will truly deliver a win-win.

Remember, many entrepreneurs have made a LOT of money alongside high quality angel and venture capital investors.  I'll write more later about some ways to find great investors.