Angel Investing

DAVID S. ROSE is a serial entrepreneur, Inc. 500 CEO, and renowned early stage investor, described by Forbes as “New York’s Archangel”. He is the Founder of New York Angels, Associate Founder of Singularity University, and Founder of Gust, the global startup platform connecting over a million startups with over 100,000 investors.

• Foreword by Reid Hoffman xiIntroduction: How I Became an Angel Investor xvPart I The Basics of Angel Investing 1Chapter 1 The 25 Percent Annual Return Why Everyone with Six Figures to Invest Should Consider Angel Investing 3Chapter 2 Plus, It’s Really Fun The Nonfinancial Rewards of Being an Angel 21Chapter 3 Risks and Returns Going In with Your Eyes Wide Open 37Chapter 4 The Financial Life of a Startup Where Angels Fit into the Big Financing Picture 4Part II Economics, Portfolios, and Your Personal Thesis 49Chapter 5 The Secret Economics of the Angels What That Means for Valuations and Expectations 51Chapter 6 The Portfolio Theory of Angel Investing Why Every Angel Needs to Invest in at Least 20 Companies 67Chapter 7 Developing Your Personal Investing Thesis Determining What Makes Sense for Your Portfolio 77Chapter 8 Impact Investing Doing Well While Doing Good 85Part III Deal Flow, Selection, and Due Diligence 91Chapter 9 Generating Your Deal Flow Sourcing and Identifying High-Potential Opportunities 93Chapter 10 Building Your Angelic Reputation Getting the Best Deals to Come to You 103Chapter 11 Bet the Jockey, Not the Horse Evaluating the Entrepreneur and Picking the Right One to Back 109Chapter 12 Catching the Pitch Welcome to the Shark Tank! 121Chapter 13 Look Under the Hood and Lead a Deal Coordinating Due Diligence and Running the Show 133Part IV Deal Structuring and Negotiation 141Chapter 14 Investment Forms and Their Functions Notes or Equity? Direct Investments or Syndicates? 143Chapter 15 The Art of the Angel Deal Negotiating a Win-Win Relationship with Your Entrepreneur 157Chapter 16 Term Sheets and Closing Trust Everyone … But Cut the Cards Anyway 165Chapter 17 Joining an Angel Group Increasing Your Opportunities and Reducing Your Risks 171Part V Post Investment: Adding Value and Exiting 181Chapter 18 After the Investment Managing Your Portfolio Through Good Times and Bad 183Chapter 19 One Plus One Is Three Adding Value as an Active Angel Investor 193Chapter 20 The Impact of AI and Advancing Technology Why You Need to Fundamentally Understand Exponential Growth 199Chapter 21 Exits and Other Unicorns Getting Your Money Out Makes All Things Right 205Part VI Other Ways to Be an Angel 217Chapter 22 Crowdfunding, Syndicates, and the Global Revolution Angel Investing for Everyone 219Chapter 23 Sit Back and Let Someone Else Do the Work Investing in Startups Through Seed Funds and Venture Funds 227Chapter 24 The Entrepreneurship Financing Ecosystem Grants, Startup Studios, Accelerators, and Other Players 235Chapter 25 The Gust Online Platform for Angel Investing How to Find, Invest, and Manage Your Angel Portfolio 249Notes 257Glossary 261Acknowledgments 273About the Author 277Index 279