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If the economic downturn is causing your sales to slow, you need to quickly raise some cash to tide you over. Sooner is better than later for raising funds, says John Taylor, vice president of research at the National Venture Capital Association. With the stock market trending down, he says, angel and venture investors may feel less flush and be more hesitant to invest in the coming months.

"We are definitely advising people to raise a little bit more while they can and spend a little bit less for the rest of this year," says Flybridge Capital Partners general partner Jeffrey Bussgang.

Online-video company Blackwave Inc. took this advice to heart when it sought $16 million in round B funding late last year. The stock market had already begun to gyrate, so Blackwave president and CEO Robert Rizika, 42, decided to take advantage of the high interest in Blackwave's technology and seek more money than the year-old startup needed right away.

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