Best New Startup business

KICKSTARTER lets artists and other creators fund projects

Founder: Perry Chen, Yancey Strickler, and Charles Adler
What it does: Kickstarter lets artists and other creators fund projects without giving up an equity stake in their products. Creators outline their projects, set fundraising goals, and offer specific rewards to users who pledge to put up some tiny fraction of the total sum. No one is charged anything unless the full goal is met.

How it's going to make money: Kickstarter takes a 5% cut of all successful funding drives.

Investors: No disclosed funding.

ETSY is a marketplace for users to buy and sell homemade goods

Founders: Robert Kalin, Jared Tarbell, Chris Maguire, Haim Schoppik
What it does: Etsy is a marketplace for users to buy and sell homemade goods, vintage goods, and art supplies. Someone maintains a blog dedicated to how much they hate Etsy, which means they're doing something very right.

How it's going to make money: Etsy charges a small flat fee for listings and takes a commission on every sale.

Investors: Caterina Fake, Stewart Butterfield, Joshua Schachter, Albert Wenger, Union Square Ventures, Accel Partners, Hubert Burda Media (.6 million)

FOURSQUARE lets people "check-in" to venues like bars and restaurants

Founders: Dennis Crowley and Naveen Selvadurai
What it does: Foursquare lets people "check-in" to venues like bars and restaurants from their mobile phones, letting their friends know where they are and who they're with. See exactly how it works here.

How it's going to make money: Foursquare - like its main competitors - is just starting to work out its revenue model, and will be playing with a lot of ideas in the coming months. So far, the major source of revenue looks to be promotional deals with venues, as well as more general in-app advertising.

Investors: Union Square Ventures, O'Reilly AlphaTech Ventures, Jack Dorsey, Kevin Rose, Alex Rainert, Ron Conway, Joshua Schachter, Chad Stoller, Sergio Salvatore, and Daniel Levine ($1.35 million)

APPNEXUS lets advertisers monitor and alter their campaigns on the fly

Founders: Brian O'Kelley
What it does: AppNexus is a gateway for online ad purchases that lets advertisers monitor and alter their campaigns on the fly.

How it's going to make money: Creating yet another layer between advertisers and content publishers might seem crazy, but this level of flexibility is worth paying for. The talent and funds flowing in are a testament to how impressed people are with the company.