In “What Every Angel Investor Wants You to Know,” authors Brian S. Cohen and John Kador provide a comprehensive guide to understanding the world of angel investing. The book is divided into 11 chapters, each of which covers a different aspect of the angel investing process, from finding and evaluating potential investments to negotiating deals and managing a portfolio of investments.
Chapter 1: Introduction to Angel Investing
The first chapter of the book provides an overview of the history and basics of angel investing. The authors explain that angel investors are typically high net worth individuals who invest their own money in early-stage companies in exchange for an ownership stake. They also discuss the differences between angel investors and venture capitalists, and the benefits and risks of investing in early-stage companies.
Chapter 2: Finding Deals
In chapter two, the authors discuss how to find potential investment opportunities. They suggest attending networking events, joining angel investing groups, and using online platforms to find deals. They also provide tips for evaluating the potential of a company and its management team.
Chapter 3: Evaluating Deals
In chapter three, the authors provide a detailed overview of the due diligence process. They explain how to conduct financial and legal due diligence, as well as how to evaluate the company’s business plan and market potential. They also provide a checklist of items to consider when evaluating a potential investment.
Chapter 4: Negotiating Deals
In chapter four, the authors discuss the negotiation process. They explain how to determine the value of a company and negotiate a fair price for your investment. They also provide tips for negotiating deal terms, such as valuation, liquidation preferences, and board representation.
Chapter 5: Structuring Investments
In chapter five, the authors discuss the different ways in which angel investors can structure their investments. They explain the difference between equity and debt investments, and provide tips for structuring investments to maximize returns and minimize risk.
Chapter 6: Managing a Portfolio of Investments
In chapter six, the authors discuss how to manage a portfolio of investments. They explain how to track your investments, monitor their performance, and make adjustments as needed. They also provide tips for exiting investments and realizing returns.
Chapter 7: Working with Portfolio Companies
In chapter seven, the authors discuss the importance of working with portfolio companies to help them succeed. They explain how to provide guidance and support, as well as how to manage conflicts of interest and avoid micromanaging.
Chapter 8: Raising a Fund
In chapter eight, the authors discuss the process of raising a fund to invest in early-stage companies. They explain how to structure a fund, market it to investors, and manage investor relations.
Chapter 9: International Angel Investing
In chapter nine, the authors discuss the differences between investing in early-stage companies in different countries. They explain how to navigate cultural differences and legal complexities, and provide tips for evaluating international investment opportunities.
Chapter 10: Exit Strategies
In chapter ten, the authors discuss the different ways in which angel investors can exit their investments and realize returns. They explain how to prepare for exits, and provide tips for maximizing returns and minimizing risk.
Chapter 11: Conclusion
In the final chapter of the book, the authors provide a summary of the key lessons and takeaways from the book. They emphasize the importance of due diligence, structuring investments carefully, and working closely with portfolio companies to help them succeed.
Overall, “What Every Angel Investor Wants You to Know” is a comprehensive and informative guide to the world of angel investing. Whether you are a seasoned investor or a first-time investor, this book provides valuable insights and practical advice for anyone interested in investing in early-stage companies.
Interested in reading the whole book?
Buy the book “What Every Angel Investor Wants You to Know” on Amazon
