Venture capitalists can be your best friend, providing money, contacts, and expertise that you could not get on your own -- assuming you choose wisely. Here are some tips on what to look for from entrepreneurs who have been in the market recently:

A good fit Find a VC partner with a strategic view that matches your own. If you plan to remain private, make sure your partner's standard exit strategy isn't an IPO.

Advice, not meddling You want someone who understands your product. Even if you can persuade a VC partner who does, say, oil deals to finance your high-tech startup, he may not have the stomach for the routines of your business and probably won't be able to offer knowledgeable advice.

People power Make sure you reserve a big slug of equity for your own staff -- about 30% instead of the customary 15%. When money is tight, you need people who are motivated to work night and day. And they won't do that for mere wages.

Good timing Go back for more money before you have used the first round of financing. If you are desperate, the financiers will sense that -- and you'll have to accept onerous terms.