Angel Financing for Entrepreneurs

Angel Financing for Entrepreneurs will give you the information you need to understand how angel investors think, as well as how to identify investor expectations, understand the investment analysis process, and prepare for post-investment requirements. Written by Susan Preston, an experienced angel investor, worldwide speaker and consultant on angel financing, and former Kauffman Foundation Entrepreneur-in-Residence, this hands-on resource, explains the factors that determine how private equity investors spend their money and what they expect from entrepreneurs. For example: Most venture capitalists do not invest in seed or start-up financing rounds Investors typically require seasoned management, with successful start-up experience Investors are looking for entrepreneurs with passion for their ideas and the willingness to take and apply sound advice Business plans must be well-written with detailed financial projections that extend 3–5 years Investors are looking for a clear path to profitability in the business model Entrepreneurs must have developed a corporate structure that is clean and uncomplicated And much more

Foreword by Honorable Lorrie Keating Heinemann vii 1 Introduction 1 2 The Basics About Angel Investors 5 3 Private Equity Investing 30 4 Understanding Your Funding Needs 55 5 Looking for Angels and What Angels Are Looking For 77 6 Preparing for Investors 93 7 Making the Match 112 8 The Investment Process 133 9 After the Investment 155 Appendixes 1 Glossary of Terms Related to Private Equity and Debt Financing 165 2 Non-Disclosure Agreement (Mutual) 193 3 U.S. Securities and Exchange Commission Regulation D 197 4 Angel Organizations in the United States and Canada 213 5 Angel Organizations in Europe 295 6 Due Diligence Checklist 301 7 Due Diligence Interview Questions 309 8 Convertible Promissory Note 315 9 Angel-Entrepreneur Internet Matching Sites 321 10 Experts’ Profiles 343 References 353 Acknowledgments 355 About the Author 357 Subject Index 359 Business, Angel Organization, and Web Site Index 373