Marc Dangeard argues that you raise a small amount of money from friends and family and try to make do with that in The reality of fundraising.
So I believe the best way to raise money is to go to friends and family, and then figure out how you can start generating cash from the little you were able to get there. The good news is that if you look at the top 500 companies of Inc magazine (companies doing between 7x growth for 3 years and 30x growth for 3 years), the average starting capital is 75k, and only 8% ever raised more than 1M.
Marc explains his reasoning succinctly. There is one caveat that I will put on this advice: if the business fails, relationships can go sour. Friends and family don’t necessarily enjoy losing money. Professional investors are more used to it.
This segment is a part in the series : Blogosphere on Bootstrapping