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Angel Financing for Entrepreneurs
Early-Stage Funding for Long-Term Success

“If only the entrepreneurs pitching my Dinner Clubs and others in our alliance of angel groups had had this wonderful guide to the murky world of angel investing when they approached us! Clear, concise, chockfull of facts and contacts, a great resource!”--John May, chair, Angel Capital Association; manager, Active Angel Investors; and author of Every Business Needs an Angel

 

 

“Susan Preston is the entrepreneur’s best friend.  She has an incredibly sharp intellect, added to by her years of experience in angel investing, business, and the law.  Sue possesses that rare combination of great knowledge and down-to-earth practicality, and smart entrepreneurs will pay close attention to her teaching and her advice.”--Susan P. Strommer, president and CEO, National Association of Seed and Venture Funds

 

 

“Entrepreneurs and angels alike will generate a strong return on their investment of time in reading this complete primer on seeding a venture for success. Susan Preston is an expert on angel investing and entrepreneurship, and it shows in this lucid survey of everything an angel or entrepreneur needs to know when seeding a venture.”--Ian Patrick Sobieski, managing director, Band of Angels and Band of Angels Fund, LP

 

 

  “This is the BEST book I’ve seen to help both entrepreneurs and investors with invaluable advice on how to be successful in this marvelous free-enterprise system of ours.   Susan speaks from first-hand knowledge and experience and is a top expert in this field with practical, insider tips you won’t find anywhere else.”--Bob Geras, president, LaSalle Investments with 40-plus years of experience as an angel investor and venture capitalist

 

 

“An invaluable resource for both angels and entrepreneurs.  Susan Preston puts it all together in one easy-to-read, well-organized, and practical book.”--Susannah Malarkey, executive director, Alliance of Angels and the Technology Alliance

 

Susan L. Preston (Author)

9780787987503, Wiley

Hardback, published 17 April 2007

384 pages, Exhibits: 10 B&W, 0 Color
23.6 x 15.9 x 3.3 cm, 0.599 kg

Angel Financing for Entrepreneurs will give you the information you need to understand how angel investors think, as well as how to identify investor expectations, understand the investment analysis process, and prepare for post-investment requirements. Written by Susan Preston, an experienced angel investor, worldwide speaker and consultant on angel financing, and former Kauffman Foundation Entrepreneur-in-Residence, this hands-on resource, explains the factors that determine how private equity investors spend their money and what they expect from entrepreneurs. For example:

  • Most venture capitalists do not invest in seed or start-up financing rounds
  • Investors typically require seasoned management, with successful start-up experience
  • Investors are looking for entrepreneurs with passion for their ideas and the willingness to take and apply sound advice
  • Business plans must be well-written with detailed financial projections that extend 3–5 years
  • Investors are looking for a clear path to profitability in the business model
  • Entrepreneurs must have developed a corporate structure that is clean and uncomplicated
  • And much more

Foreword by Honorable Lorrie Keating Heinemann vii

1 Introduction 1

2 The Basics About Angel Investors 5

3 Private Equity Investing 30

4 Understanding Your Funding Needs 55

5 Looking for Angels and What Angels Are Looking For 77

6 Preparing for Investors 93

7 Making the Match 112

8 The Investment Process 133

9 After the Investment 155

Appendixes

1 Glossary of Terms Related to Private Equity and Debt Financing 165

2 Non-Disclosure Agreement (Mutual) 193

3 U.S. Securities and Exchange Commission Regulation D 197

4 Angel Organizations in the United States and Canada 213

5 Angel Organizations in Europe 295

6 Due Diligence Checklist 301

7 Due Diligence Interview Questions 309

8 Convertible Promissory Note 315

9 Angel-Entrepreneur Internet Matching Sites 321

10 Experts’ Profiles 343

References 353

Acknowledgments 355

About the Author 357

Subject Index 359

Business, Angel Organization, and Web Site Index 373

Subject Areas: Business & management [KJ]

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