The Gust Guide to Making Money and Having Fun Investing in Startups
by David S. Rose
Foreword by Reid Hoffman, CoFounder of LinkedIn
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 (Wiley; April 2014) 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.