Angel Investing: The Gust Guide to Making Money & Having Fun Investing in Startups
They deliver more capital to entrepreneurs than any other source. And they often receive an incredible return on their investments. They’re angel investors, some of the most important — and least understood — players in business today, whose investments in startups exceed $20 billion per year. Many, if not most, of the world’s largest companies were originally funded by angels — companies like Apple, Microsoft, LinkedIn and Amazon.com.
But until now, little has been written about these angels, due in part to their preference for anonymity. ANGEL INVESTING: The Gust Guide to Making Money and Having Fun Investing in Startups by David S. Rose provides an inside look at who these angels are, how they operate, and how anyone with six figures to invest can potentially generate annual returns of 25% while funding tomorrow’s industry leaders... and having a lot of fun in the process.
In the past few years, angel investing has moved from an arcane, tiny backwater of the financial world to a business arena that receives coverage in mainstream newspapers and smash hit television shows such as ABC’s Shark Tank. Every year angels invest over $20 billion into startup companies in the US alone (and double that amount worldwide). Historically this been a virtually random activity, but over the past several years angel investing has begun to be recognized as a legitimate part of the Alternative Investments asset class.
With a foreword by Reid Hoffman — co-founder of LinkedIn and a prolific angel investor himself — together with hard research studies and a host of stories from his personal experience as one of the world’s leading angels, Rose explains in this book precisely how angels and venture capitalists differ, describes proven ways for entrepreneurs to attract them, and provides all the relevant resources for investors to enter into the world of startup funding.
Rose tackles all the challenging questions that have long confounded angel investors and the entrepreneurs seeking to attract them:
• Who can be an angel... and who should be an angel?
• Where do angels find hidden startup gems before the public hears about them?
• How should an angel build a portfolio that can return 25% annually over a decade?
• What is it like to lose all of an investor’s money? And, conversely, what does it feel like to invest in a failed startup as an angel investor?
• What are some common mistakes that inexperienced angel investors make?
Successful angels know that investing in entrepreneurial ventures is more than just providing money. ANGEL INVESTING is the first complete, up-to-date guide to the subject, including what angel investing is, how one gets started, how to find deal flow, evaluate opportunities, negotiate terms, join an angel group, structure investments, and work with venture capital funds.
ANGEL INVESTING includes tools, tactics, and strategies for high-tech, low-tech, and every other kind of early-stage investing. Rose opens the doors to those angels who have limited experience, while augmenting the experience of seasoned investors. Entrepreneurs will gain access to the mind-set of winning angels, and learn how best to win them over, as well as finding information on how to value, structure and bring their companies to a successful exit.
The combination of advancing technology, changing federal regulations, rapidly dropping startup costs and new online investment platforms means that it is now possible for any serious investor to undertake angel investing the right way — and that is what the book ANGEL INVESTING is all about.
ABOUT DAVID S. ROSE:
David S. Rose is an Inc. 500 CEO, serial entrepreneur and angel investor who has founded or funded over 90 pioneering companies. He has been described by Forbes as "New York's Archangel", by BusinessWeek as a “world conquering entrepreneur”, by Crain's New York Business as "the father of angel investing in New York", and by Red Herring magazine as “patriarch of Silicon Alley.”
PRAISE FOR ANGEL INVESTING:
"As an angel investor and a long-time fan of David S. Rose, I was delighted to hear he finally captured his wit and wisdom in the pages of a book. David is a born teacher — clear minded, witty and provocative, with amazing stories to illustrate every key idea and insight. Those gifts — as well as his unsurpassed knowledge of his field — are teaching me so much more about investing than I've learned over the years doing it! Read every page of Angel Investing."
Barbara Corcoran
Real Estate Mogul, Shark Tank star, Angel Investor
“From the secret economics of angel investing and the best methods for finding and picking tomorrow’s big winners to proven techniques for adding value to any business you invest in, Angel Investing provides readers with everything they need to know to get started in this fascinating, fun — and lucrative — business arena.”
David Bach
#1 New York Times bestselling author of The Automatic Millionaire and Start Late Finish Rich, Angel Investor
“This is the most comprehensive and readable guide to angel investing ever written. The chapter on valuation and expectations lays out a clear framework for understanding one of the least well-known pitfalls in the angel world. And its emphasis on creating a win-win relationship with the entrepreneur is at the heart of being a long-term successful angel — and continuing to see the best deal flow. I recommend this book to anyone even thinking about making or receiving angel investments.”
Howard L. Morgan
Founding Partner, First Round Capital
“The world of entrepreneurial startups is where the most exciting and creative action is happening in today’s business world, which is why I was a strong supporter of the JOBS Act of 2012. No wonder millions of people are wondering how they can get involved as investors. There’s no better place to start than by reading David S. Rose’s Angel Investing.”
U.S. Senator Charles E. Schumer
Senate Finance Committee
“David S. Rose’s Angel Investing is the best book on early stage investing ever written. His method of step-by-step explanation is better than any I have read in 20+ years of professional angel investing. I will recommend this to every serious entrepreneur seeking investment as required reading before the effort.”
Dave Berkus
Chairman Emeritus, Tech Coast Angels and Author of Berkonomics
“Only an angel who has backed over 90 start-ups could possess the mastery to provide such illumination into our craft. David’s candor and insights will attract more investors to this entertaining and lucrative activity so essential to economic growth.”
John Huston
Founder & Manager, The OhioTechAngel Funds
"Angel Investing is an engaging, easy read, full of real stories and hard numbers, actual cases and a whole lot of good advice. David S. Rose brings tons of real-world knowledge to the subject that makes this required reading for every new angel."
Tim Berry
Author of Business Plan Pro, Entrepreneur, Angel Investor
"David S. Rose is one of the most insightful thinkers about the angel and venture investment markets. It's rare that an investment leader with so much experience and success takes the time to share (systematically!) his knowledge so openly. Whether you are new to angel investing or someone with lots of experience, you will learn a ton from reading this book."
Marc Bodnick
Co-Founder, Elevation Partners
“David S. Rose has distilled his vast knowledge into an easy to read yet comprehensive guide to angel investing. It is a must read for all angel investors as well as for entrepreneurs seeking angel financing.”
Jeffrey Seltzer
Managing Partner, Pierce Yates Ventures, Former Deputy Chairman, CIBC World Markets, Angel Investor
"Anyone with a checkbook can be an angel investor, but it takes insight to do it well. David S. Rose has written a terrific new book that will help would-be angels make money, rather than lose it. From explaining the value of diversification, to tips on evaluating deals, to offering up plans to attract good deals, Angel Investing will help you move from a money-losing amateur to a money-making professional angel. And if you’re an entrepreneur looking for angel money, you should read this book too. It will help you understand what knowledgeable angels are seeking and how they will evaluate you."
Scott Shane
Author of Fool’s Gold? The Truth Behind Angel Investing in America
“The future of financial markets will be based on the democratization of capital, as the funding of innovation is no longer limited to large institutions and venture capitalists. Angel Investing is the definitive guidebook for visionary investors seeking to profit from the startups of today that will become the superstars of tomorrow. David S. Rose is both a brilliant futurist and an engaging, accessible writer, and his book reveals the secrets behind investing at the leading edge of technologies and markets."
Faith Popcorn
Futurist, CEO and Author of The Popcorn Report
- Author
- David S. Rose, Reid Hoffman
- Format
- hardcover
- Pages
- 283
- Publisher
- Wiley
- Language
- english
- ISBN
- 9781118858257
- Genres
- business, entrepreneurship, finance
- Release date
- 2014
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