Every entrepreneur with a great business idea wants the chance to get before venture capital investors or angel funding and be awarded a large sum of business capital. Alas, only a small number of all potential small businesses actually get the nod from venture capital or angel funding.

What does it take for a business to make the narrow cut and find themselves on the short list for angel funding? Here are a few important status milestones you

A Dream Team

Even an average business idea can be wildly successful with the right leadership team behind it. Angel funding groups and venture capital funding will scrutinize the management team on their prospects. They will look at the quality of the team in terms of years of experience, industry track record, and particularly other experience with successful startup businesses.

The Right Market

A fundable startup company will have the details of the market to prove to angel funding groups or venture capital funding that a market exists, and that it is not too big or too small. The market projections should be found within both the business plan and the business model so investors can see details of market research and how the market will be reached.

Industry and Geography

Before you submit any type of proposal for angel funding or venture capital funding, check the details of the venture capital or angel funding group to be sure of what types of companies they are interested in. These specs can normally be found on widespread venture capital or angel funding data bases, on their websites, and on their printed materials.

Start up funding groups tend to narrow their scope by industry and/or geography. If your start up business is not in either category for the funding group, don’t bother wasting their time or yours.

Believable Financial Projections

Angel funding groups and venture capital funding firms have seen enough loosely based financial projections to spot the unreasonable and even laughable ones right away. Your income projections should be based on past experience, or at least on a reasonably similar business model within the industry. It should clearly state reasonable gross margins of at least 50% and rational profit projections. Don’t display outrageous net profits of 20% or more – it will get your proposal tossed out immediately.

A new start up business can get financial backing from angel funding or venture capital funding. Following the above four milestones is a must in order to be considered a “fundable” company.

Financial trends have their ebbs and flows, their ups and downs, and their hot and cold trends. Sometimes the stock market is bullish, and some years it’s a bear. Some years, real estate is a great investment with a big payoff, while other years it is wiser to avoid any investment in real property.

Venture capital also experiences trends with certain investment markets. Experienced venture capital firms are wise to take note of which businesses and industries are more likely to succeed, and which investment opportunities are the best places to place their available funds.

2011 was a big year for venture capital. Since 2008, venture capital funds dwindled due to a shrinking economy. However, results of 2011 showed a 22% growth of total funds invested compared to 2010. And 2012 looks to be a banner year for investment opportunities in new businesses.

What are the hottest trends for venture capital funding in 2012? Here is a look at three of the top industries venture capital funds are looking at.

Software as a Service (SaaS)

Software is still hot, but instead of the old traditional method of buying software from a box at Office Depot, or even downloading code from an internet source, software companies are delivering their “product” through their own servers.

SaaS has been a growing sub industry of technology sub-industry ever since the advancement of lighting-speed internet. Clients can simply log on to a software vendor’s site, create an account, and experience the benefits of the software function.

Venture capital firms are finding that SaaS is a hot investment opportunity. If you are a new business in software development, consider SaaS as a possible option to catch the eye of venture capitalists.

Big Data in Information Technology

Information technology and security companies are receiving a lot of attention from venture capital firms. In the second decade of the 21^st century, the collection and storage of electronic data is more important than ever.

Industries such as health care and social media are big users of data. Companies that develop newer and more efficient database management tools that help with the collection, storage, and retrieval of large amounts of data will find their way into the good graces of venture capital firms.

Social Mobile Technology

Facebook has announced it will go public with a $5 billion IPO. Who says social media doesn’t pay? With the hundreds of millions of smart phones in users’ hands, and the myriad of new Android phones and Apple iPhone Siri, phone clients are looking to go mobile and stay there.

If you have a company that is able to tap into the mobile social media application market, you will be a hot player for venture capital in 2012.