Check out this post from Seth Godin, suggesting a creative, and good, way to fund a new project within a business. It's not totally clear how this funding solution would work in a true start-up that has yet to produce anything (other than the funding received would be exclusively for the original product, and not spinoffs therefrom). Traditional VC or angel terms can be, as Connect magazine warned, stifling to management attaining true greatness with the organization. As such, funding the project, instead of giving up the whole company may make sense.
Check it out: Seth Godin's Blog
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