Thinking about taking your business plan to angel investors? U.S News and World Report has an interesting interview with Scott Shane, the author of the new book "Fool's Gold?: The Truth Behind Angel Investing in America." While Shane spends a lot of the time debunking myths about angels, he also offers of some tips for entrepreneurs with a business plan who are looking for funding. Here's our [edited] version of the article's highlights:

-Out of all informal investments made to small businesses, angels only make up 8%. 92% are friends and family. Angel groups (as opposed to just a single investor) are make investments in about 500 or 600 companies a year.

-While it's commonly assumed that angel investment is "smart money" and investment from a friend or family member is "dumb money"—because an angel ostensibly has more value to add—this isn't always true. Says Shane: "There's a lot of evidence that says that's not true if you get money from the typical angel. The typical angel does not have a lot more experience in running start-ups than friends or family."

-As far as what types of businesses have the best shot at getting angel funding, angel groups (as opposed to a single investor) are typically interested in tech companies. On the flip side, single angels invest in all sorts of businesses, with retail being the most common.

-Your start-up can increase the likelihood that it to get money from an angel group by presenting them with a business plan that demonstrates your start-up will eventually have high returns on investment and that it has the potential for substantial growth. (Sounds a lot like VC firms to us). Single angels don't expect those same kinds of returns, but again, you want to show in your business plan what value they'll reap from investing.

-Regarding bank loan v. angel investing, Shane says: "That depends on how much time it's going to take to get the bank loan and the odds of getting it versus getting it from an angel and how much that will cost."

Read the interview in its entirety here.