Angel Investing Matching Startup Funds with Startup Companies--The Guide for Entrepreneurs and Individual Investors

by Van Osnabrugge, Mark; Robinson, Robert J.

• ISBN13: 9780787952020
• ISBN10: 0787952028
• Edition: 1st
• Format: Paperback
• Copyright: 2000-05-02
• Publisher: Jossey-Bass

Summary

Angel Investing is an indispensable guide for both entrepreneurs seeking capital and would-be angel investors in search of a big return. Its in-depth coverage reveals what active angel investors seek in a startup, how entrepreneurs can pitch their company, financing strategies, and the invaluable resources used by the pros.

Author Biography

MARK VAN OSNABRUGGE is a consultant at Marakon Associates, a top-tier international consulting firm based in Stamford, Connecticut. A former fellow of the Harvard Business School, he is also the widely published author of articles about entrepreneurial finance. He lives in Chicago, Illinois. ROBERT J. ROBINSON is associate professor of negotiations at the Harvard Business School and an angel investor with experience in a variety of startup companies. He lives in Boston, Massachusetts.

Table of Contents

Preface	xi
Acknowledgments	xxi
The Authors	xxiii
Part One: Financing Options for Start-up Firms	1	(60)
Funding Entrepreneurial Firms	3	(20)
Bootstrapping Internally and the Challenges to Securing Outside Finance	23	(13)
Types of Outside Investors Willing to Finance Growing Firms	36	(25)
Part Two: The Two Main Sources of Funding: Business Angels and Venture Capitalists	61	(52)
The Value of Business Angels and Venture Capitalists	63	(14)
Harnessing the Power of Business Angels and Venture Capitalists	77	(18)
Understanding the Investors' Structural and Personal Differences	95	(18)
Part Three: Business Angel and Venture Capitalist Differences Throughout the Investment Process	113	(100)
Investors' Motivations and Investment Criteria	115	(28)
Screening the Deal and Conducting Due Diligence	143	(28)
Negotiating and Forming the Legal Contract	171	(17)
Monitoring the Investment	188	(11)
Exiting the Investment and Realizing Returns	199	(14)
Part Four: Attracting Business Angel Funds to Your Start-up Firm	213	(20)
Valuing Your Firm	215	(9)
Negotiating the Funding Agreement	224	(9)
Part Five: Becoming a Successful Business Angel Investor	233	(14)
Steps in Effectively Making Your First Investment in an Entrepreneurial Firm	235	(12)
Part Six: The Future of the Business Angel Market	247	(8)
The Business Angel Market in the New Millennium	249	(6)
Part Seven: Putting the Wheels in Motion	255	(2)
Appendix One: A Detailed List of More Than Seventy Matching Services in the United States	257	(82)
Appendix Two: Further Helpful Resources	339	(20)
Appendix Three: Writing a Winning Business Plan	359	(14)
Glossary	373	(10)
Bibliography	383	(24)
Name Index	407	(4)
Subject Index	411