Locating the ideal angel investor is an important step in funding a start-up business. Angel-investor networks are considered to be the best place to begin a search for funding.

These national and local groups of angel investors assemble formally or informally to deliberate on transactions and gain knowledge about the most suitable new business ideas.

Every network functions in its own way. Fees for making presentations may be imposed by some, while others may charge a fee for submitting a plea for consideration.

Some even make it mandatory for an angel member to introduce new people to the group, while others seek opinions through the group's Web site. In the US, there are several angel network groups that can be accessed for the benefit of interested individuals.

Since a large number of angel groups restrict their funding to specific geographical regions, the networks are spread over eight regions: the Pacific Northwest, Southwest, Mid-Atlantic, Northeast, North Central, California, South, and Midwest. There are also groups that are open to investments at any place in the US.

The Angel Capital Electronic Network is a major group that came into being at the behest of the US Small Business Administration's Office of Advocacy. Only those entrepreneurs who are capable of selling security interest in their companies that can enlist. An annual fee is required for enlistment, and charges are separate for each state. The maximum fee is around $450.

Although companies can garner funding to the tune of $5 million with ACE-Net, the network is highly beneficial for companies looking for up to $1 million. Several businesses are kept out of the purview of the ACE-Net. These include businesses related to the oil or gas industries, single proprietorships, general or limited partnerships, joint ventures, and blank-check or development-stage companies.