What’s the best way to raise money?

Ben Horowitz (Co-Founder & Partner @ Andreessen Horowitz)
Angels vs. Venture Capitalists – Ben’s Blog

If you are a small team building a product with the hope of “seeing if it takes” (with the implication being that you’ll try something else if it doesn’t), then you don’t need a board or a lot of money and an angel round is likely the best option. On the other hand, if you’ve developed a strong belief in your product or your product idea and you are in a race against time to take the market, then a venture round is more appropriate.