Angel Investing

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 leastunderstood--players in business today. The United States has closeto three million angels, whose investments in startups exceed $60billion per year. Some of our most successful companies were fundedby angels--companies like Ford, AOL, and Amazon.com. But until now,little has been written about these angels, due in part to theirpreference for anonymity. Angel Investors provides an inside lookat who these angels are and how they operate. It also showswould-be angels and entrepreneurs how best to find eachother.

To learn more about this book, visit its website. FINANCING OPTIONS FOR START-UP FIRMS.

Funding Entrepreneurial Firms.

Bootstrapping Internally and the Challenges to Securing OutsideFinance.

Types of Outside Investors Willing to Finance Growing Firms.

THE TWO MAIN SOURCES OF FUNDING: BUSINESS ANGELS AND VENTURECAPITALISTS.

The Value of Business Angels and Venture Capitalists.

Harnessing the Power of Business Angels and VentureCapitalist.

Understanding the Investors' Structural and PersonalDifferences.

BUSINESS ANGEL AND VENTURE CAPITALIST DIFFERENCES THROUGHOUT THEINVESTMENT PROCESS.

Investors' Motivations and Investment Criteria.

Screening the Deal and Conducting Due Diligence.

Negotiating and Forming the Legal Contract.

Monitoring the Investment.

Exiting the Investment and Realizing Returns.

ATTRACTING BUSINESS ANGEL FUNDS TO YOUR START-UP FIRM.

Valuing Your Firm.

Negotiating the Funding Agreement.

BECOMING A SUCCESSFUL BUSINESS ANGEL INVESTOR.

Steps in Effectively Making Your First Investment in anEntrepreneurial Firm.

THE FUTURE OF THE BUSINESS ANGEL MARKET.

The Business Angel Market in the New Millennium.

PUTTING THE WHEELS INTO MOTION.

Appenxix 1: A Detailed List of More than Seventy Matching Servicesin
the United States.

Appendix 2: Further Helpful Resourses.

Appendix 3: Writing a Winning Business Plan.

Glossary.

Bibliography.

Name Index.

Subject Index. "This is the best research on the angel capital market that I'veseen. It should be read by every serious researcher in smallbusiness finance as well as students in classes in entrepreneurialfinance, but it is also a must read for every entrepreneur whoneeds additional equity financing."--Robert E. Berney, chiefeconomist, U.S. Small Business Administration

"Angel Investing is the definitive resource on an emerging newsource of capital and talent. Van Osnabrugge and Robinson haveassembled valuable information for entrepreneurs seeking capitaland angels seeking startups."--Peter S. Cohan, author, Net Profitand The Technology Leaders

"Anyone interested in raising capital for a new enterprise shouldread Angel Investing to better understand the changing role ofventure capitalists and the emergence of business angels as agrowing source of risk capital and sound advice."--Ned Heizer,founder and first chairman, National Venture CapitalAssociation

"this book will be of interest to potential investors,entrepreneurs, venture capitalists and institutional investorseverywhere..."(Chartered Secretary, March 2001)

"The book is sensibly and logically structured, backed byexhaustive research with generous and helpful attribution to otherspecialists in the field." (Start Your Own Business, February2001)

"...an interesting and informative book..." (M2 Communications, 12June 2001) MARK VAN OSNABRUGGE is a consultant at Marakon Associates, a top-tier international consulting firm based in Stamford, Connecticut. A former fellow of the Harvard Business School, he is also the widely published author of articles about entrepreneurial finance. He lives in Chicago, Illinois. ROBERT J. ROBINSON is associate professor of negotiations at the Harvard Business School and an angel investor with experience in a variety of startup companies. He lives in Boston, Massachusetts. For the entrepreneur, angel investment is one of the best ways to secure the funding needed to transform a great idea into a competitive venture. For the investor, angel investing holds the promise of enormous financial returns. In fact, many successful companies were funded by angels-companies like Cisco, AOL, and Amazon.com. Some of our top business leaders have cashed out to become angels—leaders like Apple's John Sculley, Netscape's Jim Barksdale, and Microsoft's Paul Allen. Indeed, understanding angel investing is crucial for every entrepreneur and investor in today's marketplace. Angel Investing offers the first authoritative look at this emerging form of financing, complete with stories of the investors and companies that have led the way. It is also the only comprehensive guide for the entrepreneur seeking capital and the private investor looking for a better return on investments of $100,000 or more.Written by two veteran investors, Angel Investing is based on years of research, hands-on experience, and in-depth interviews with business angels, venture capitalists, and entrepreneurs. It gives readers an unprecedented overview of how business angels compare with their better-known counterparts, venture capitalists, covering everything from investment motivations to exit strategies. It provides the resources entrepreneurs need to secure angel investment for their growing companies. And it shows would-be angels how to buy into small firms with strong growth potential.Entrepreneurs will learn what angel investors look for in a startup, how to pitch their company successfully, and how to tap the billions of dollars that business angels invest in entrepreneurial firms each year. Would-be angels will learn how to connect with startups, what criteria to look for before committing their capital, and how to make their first investment in an entrepreneurial firm. The book includes a resource section that features the first-ever listing of over seventy services. 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. The United States has close to three million angels, whose investments in startups exceed $60 billion per year. Some of our most successful companies were funded by angels—companies like Ford, AOL, and Amazon.com. But until now, little has been written about these angels, due in part to their preference for anonymity. Angel Investors provides an inside look at who these angels are and how they operate. It also shows would-be angels and entrepreneurs how best to find each other.