They often say it takes money to make money, so what do you if you have nothing to start with? That’s not a problem in this day and age, where Web 2.0 websites like San Francisco-based Prosper and British site Zopa offer loans from complete strangers. At these person-to-person lending sites, you post the amount you’re looking for and the interest rate you’re willing to pay, and strangers will bid on lending you money.
If you don’t like the idea of borrowing from complete strangers, then look towards your family and friends. Who else would have more faith in lending you money for that crazy idea of yours? Circlelending makes things official and easy collect.
Angel investors and venture capitalists are another source to tap for funding. Try TechStars or Y Combinator, both of which offer $15,000 to $25,000 in seed funding for startups, in exchange for a bit of ownership in your new company.
** Update **
I just found a story about two guys who were in the Y Combinator program, who’s 6 month old startup, “Zenter” got bought by Google!