As a Penn State student, Jeff Grygier lived in the dorms, eating macaroni and cheese because it was all he could afford.

Now, the 1984 finance graduate is looking to invest thousands of dollars in a small business. With the help of a recently created Web site, he can browse through business plans submitted by Penn State alumni.

Grygier said this is an effective way for people to invest in a business idea at an early stage.

The Web site Grygier used is StatecollegeAngels.com, and was launched over the summer. The site allows investors and entrepreneurs to meet over the Internet. Investors can browse dozens of business plans, and entrepreneurs have the opportunity to receive input on their ideas.

The site is part of UniversityAngels.com, a network of more than 75 web sites all directed at college alumni. In addition to Penn State, investors can find schools such as University of Pennsylvania (PennAngels.com) and Carnegie Mellon University (TartanAngels.com).

The sites collectively have about 2,000 investors, and the UniversityAngel.com CEO, James Marcus, said alumni are what make the sites work.

"We don't create enthusiasm," he said. "We create the tool. We try to choose schools that have a lot of pride."

Marcus said he visited Penn State about a month ago and was pleased with his reception. He said people seem enthusiastic about the site, and he expects the number of StateCollegeAngels.com business plans to increase.

The idea of "angel investing" is to match smaller business entrepreneurs with people looking to invest less than $2 million, an amount that is often times more difficult to raise than $10 million, said Penn State Director of Entrepreneurship Center Tim Murphy.

"If you have $50 million to invest, it's just easier to invest $10 million rather than having so many smaller amounts running around," he said. "There's no question the Internet has made it easier (to find investors)."

To submit a business plan, entrepreneurs register and pay $199. Their business plans are then posted for investors to browse.

"If you have a good idea and if you can get that idea to thousands of investors, you get feedback," Marcus said. "If nobody is biting, then something is fundamentally wrong."

If the plan looks agreeable, investors can talk on the phone to the business owner. If the entrepreneur does find an investor, UniversityAngels.com receives a cash fee and a small warrant position in the company.

Investors using the site said they are not bothered by the fact that they often never meet the business owner face to face.

"You're looking at early investments that have been screened," said Bob Hanson, a private investor who graduated from Yale University and has invested through the UniversityAngels.com network.

"They are people who have been through some very prestigious schools. In angel investing, you bet as much on the people as the process."

Hanson said before he decided to invest through the site earlier this year, he talked with the business owner for 45 minutes on the phone. After talking with her, he felt comfortable turning over his money.

Grygier, who said he has looked at business plans but hasn't yet invested through StateCollegeAngels.com, agreed.

"It's almost like being one-on-one with the president of the company that's looking for money," he said.

Investors and entrepreneurs could also meet person-to-person, Marcus said, and UniversityAngels.com has set up conference calls.

The minimum investment on most business plans is $25,000, but entrepreneurs could be looking for as much as $2 million.

Next year, UniversityAngels.com plans to open 20-30 new sites.