Description
Book SynopsisAchieve annual returns of 25% or more with a well-designed angel portfolio Written by David S.
Table of ContentsForeword Reid Hoffman xv
Introduction: How I Became An Angel Investor xvii
Part I The Basics of Angel Investing 1
1 The 25 Percent Annual Return: Why Everyone with Six Figures to Invest Should Consider Angel Investing 3
2 Plus, It’s Really Fun! The Nonfinancial Rewards of Being an Angel 23
3 The Portfolio Theory of Angel Investing: Why Every Angel Needs to Invest in at Least 20 Companies 37
4 The Financial Life of a Startup: Where Angels Fit in the Big Financing Picture 47
Part II The Nuts and Bolts 55
5 Develop Your Deal Flow: Sourcing and Identifying High-Potential Opportunities 57
6 Bet the Jockey, Not the Horse: Evaluating the Entrepreneur and Picking the Right One to Back 67
7 Here Comes the Pitch: Listening to the Story Does It Make Sense for Your Portfolio? 77
8 Look Under the Hood and Lead a Deal: Coordinating Due Diligence and Running the Show 87
9 Valuations and Expectations: Discovering the Secret Economics of the Angels 93
10 Investment Rounds and Their Forms: Common Stock, Convertible Notes, or Preferred Stock? 109
11 The Art of the Angel Deal: Negotiating a Win/Win Relationship with Your Entrepreneur 121
12 Term Sheets and Closing: Trust Everyone … but Cut the Cards Anyway 127
13 After the Investment: Managing Your Portfolio and Adding Value as an Active Angel 133
14 Exits and Other Unicorns: Getting Your Money Out Makes All Things Right 147
Part III Your Place in the World of Angels 159
15 The Entrepreneurship Financing Ecosystem: Grants, Venture Capital, Accelerators, and Other Players 161
16 Building Your Angelic Reputation: Getting the Best Deals to Come to You 175
17 Joining an Angel Group: Increasing Your Opportunities and Reducing Your Risks 179
18 Impact Investing: Doing Well While Doing Good 189
19 Sit Back and Let Someone Else Do the Work: Investing in Startups through Seed Funds and Venture Funds 195
20 Crowdfunding and the Global Revolution: Angel Investing for Everyone 199
Appendixes
A Angel Screening and Valuation Worksheet 205
B Angel Investment Due Diligence Checklist 209
C Gust Convertible Note Term Sheet 215
D Gust Series Seed Term Sheet 223
E Gust Revenue-Backed Note Term Sheet 237
F International Angel Investor Federations 243
G Major Regional Angel Groups 245
H Angel Investing Blogs and Resources 249
Glossary 253
Acknowledgments 265
Index 271
