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I have received funding from private investors for various projects 3 times now. Couple hundred grand each time.
I never had to shop any around, I always somehow managed to make a deal with the first people I talked to.
Tips... Be honest with yourself in your business plan. Don't write it like "how can I convince this guy/bank/whatever to give me money" enter into it more like "Is this something I truly want to spend the next 3 years of my life doing?" and use the business plan to answer that question. You need to be your own devil's advocate.
Don't go empty handed, and follow up regularly. They will usually do a long due diligence process, so if your mania doesn't last that long, you'll deflate or get desperate and they'll see it. Usually people looking for investment are clearly very excited about their ideas, but you need to back that up with substance.
If you don't absolutely have to get money, don't. Why are you giving away half of a successful idea? Think long and hard about that question.
Don't get a "loan" for the love of god. Loans need to be repaid. Investments do not. If you fail, they lose their money. It's not like a bank where you got a loan, spent the money, and now you owe your life to them. Don't do that.
Lawyer up, create a corporation, yadda yadda.
Ask what an investor can do for you beyond money. Money only does so much.
And finally, investment is best used to grow a business, not start one. First, you'll be in a better position to bargain with a finished or successful project. Second, money spent on startup costs is usually lost, and most investors don't want to spend enough to both start a business and then re-up and grow it from there.
Money is best used to accelerate a business. If you have a successful business and say to yourself "if I only had a million dollars I could exploit this opportunity so much more" then that's a good case for investment dollars.
Oh and the biggest, best, #1 tip of all time....
Never borrow money from someone who can't afford to lose it. I've never asked for a dollar to start a business from a friend or family member, and I never will.
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