It's a very complicated issue, but here are some things to consider:
You have 2 types of investors, "Angel" and "Institutional".
Angel investors are usually high net individuals/groups that invest money into your company in exchange for stock/ownership in the company. More Rarely, they will invest for royalty or ownership in the product; but this is exceptionally rare.
Institutional investors are essentially banks and venture capitalists; you can
rule these guys out if you don't meet their extremely strict criteria (please note that MOST games companies don't meet this criteria).
Something to really get a firm grip on right now, is that it's HIGHLY unlikely you'll find someone willing to invest in a project. Most intelligent investors will invest in a company , with infrastructure, and a source of established revenue; a "team" is not a company. Finding someone to "take a percentage if they put up the money" is not something that happens in real life, it's a very basic outlook on a much more complicated situation.
Your best bet, if you have a good demo, is to consider pitching it to publishers. after the initial online stuff, be willing to fly out and meet them in person, to show them your demo and make a personal impact. I'll give you a little tidbit the dev director at THQ told me about 7/8 years ago, "If your demo is not a representation of the best you can do, don't show it. Nobody wants to hear , 'this will look better once you publish this and we have money' ".
From a business perspective, your best bet is to either have a stellar demo, or to bootstrap your company. There are many opportunities for games to succeed these days through online distribution. Investors, rightly so, stay away from this industry (save the upper rungs).
cheers mate, I wish you luck and success.
Last edited by PeterK; 09-06-2010 at 10:41 AM..