Angel Investing

Achieve annual returns of 25% or more with a well-designed angel portfolio Written by David S. Rose, the founder of Gust the global platform that powers the world of organized professional angel investing Angel Investing is a comprehensive, entertaining guide that walks readers through every step of the way to becoming a successful angel investor. It is illustrated with stories from among the 90+ companies in which David has invested during a 25 year career as one of the world s most active business angels and includes instructions on how to get started, how to find and evaluate opportunities, and how to pursue and structure investments to maximize your returns. From building your reputation as a smart investor, to negotiating fair deals, adding value to your portfolio companies and helping them implement smart exit strategies, David provides both the fundamental strategies and the specific tools you need to take full advantage of this rapidly growing asset class. He details the advantages of joining an angel group, explains how seed and venture funds can help leverage an investor s resources, and reveals how recent regulatory changes and new online platforms are making startup investing accessible to millions of Americans. Making money is no longer about sitting back and reading stock listings, David says. It is now about being part owner of an exciting startup that can be fun and financially rewarding. Angel Investing teaches investors how to carefully select and manage investments, establish a long term view, and approach angel investing as a serious part of an alternative asset portfolio while also enjoying being an integral part of an exciting new venture.

Achieve annual returns of 25% or more with a well-designed angel portfolioWritten by David S. Rose, the founder of Gust--the global platform that powers the world of organized professional angel investing--Angel Investing is a comprehensive, entertaining guide that walks readers through every step of the way to becoming a successful angel investor. It is illustrated with stories from among the 90+ companies in which David has invested during a 25 year career as one of the world's most active business angels and includes instructions on how to get started, how to find and evaluate opportunities, and how to pursue and structure investments to maximize your returns.From building your reputation as a smart investor, to negotiating fair deals, adding value to your portfolio companies and helping them implement smart exit strategies, David provides both the fundamental strategies and the specific tools you need to take full advantage of this rapidly growing asset class. He details the advantages of joining an angel group, explains how seed and venture funds can help leverage an investor's resources, and reveals how recent regulatory changes and new online platforms are making startup investing accessible to millions of Americans.Making money is no longer about sitting back and reading stock listings, David says. It is now about being part owner of an exciting startup that can be fun and financially rewarding. Angel Investing teaches investors how to carefully select and manage investments, establish a long term view, and approach angel investing as a serious part of an alternative asset portfolio while also enjoying being an integral part of an exciting new venture.

Foreword Reid Hoffman xvIntroduction: How I Became An Angel Investor xviiPart I The Basics of Angel Investing 11 The 25 Percent Annual Return: Why Everyone with Six Figures to Invest Should Consider Angel Investing 32 Plus, It's Really Fun! The Nonfinancial Rewards of Being an Angel 233 The Portfolio Theory of Angel Investing: Why Every Angel Needs to Invest in at Least 20 Companies 374 The Financial Life of a Startup: Where Angels Fit in the Big Financing Picture 47Part II The Nuts and Bolts 555 Develop Your Deal Flow: Sourcing and Identifying High-Potential Opportunities 576 Bet the Jockey, Not the Horse: Evaluating the Entrepreneur and Picking the Right One to Back 677 Here Comes the Pitch: Listening to the Story Does It Make Sense for Your Portfolio? 778 Look Under the Hood and Lead a Deal: Coordinating Due Diligence and Running the Show 879 Valuations and Expectations: Discovering the Secret Economics of the Angels 9310 Investment Rounds and Their Forms: Common Stock, Convertible Notes, or Preferred Stock? 10911 The Art of the Angel Deal: Negotiating a Win/Win Relationship with Your Entrepreneur 12112 Term Sheets and Closing: Trust Everyone ... but Cut the Cards Anyway 12713 After the Investment: Managing Your Portfolio and Adding Value as an Active Angel 13314 Exits and Other Unicorns: Getting Your Money Out Makes All Things Right 147Part III Your Place in the World of Angels 15915 The Entrepreneurship Financing Ecosystem: Grants, Venture Capital, Accelerators, and Other Players 16116 Building Your Angelic Reputation: Getting the Best Deals to Come to You 17517 Joining an Angel Group: Increasing Your Opportunities and Reducing Your Risks 17918 Impact Investing: Doing Well While Doing Good 18919 Sit Back and Let Someone Else Do the Work: Investing in Startups through Seed Funds and Venture Funds 19520 Crowdfunding and the Global Revolution: Angel Investing for Everyone 199AppendixesA Angel Screening and Valuation Worksheet 205B Angel Investment Due Diligence Checklist 209C Gust Convertible Note Term Sheet 215D Gust Series Seed Term Sheet 223E Gust Revenue-Backed Note Term Sheet 237F International Angel Investor Federations 243G Major Regional Angel Groups 245H Angel Investing Blogs and Resources 249Glossary 253Acknowledgments 265Index 271