This is a summary review of What Every Angel Investor Wants You to Know containing key details about the book.
What is What Every Angel Investor Wants You to Know About?
What Every Angel Investor Wants You to Know provides a rare look inside the minds of people who are in the business of funding businesses just like yours. The author knows how to spot a great company destined for success, and in this groundbreaking book he offers soup-to-nuts guidance for any entrepreneur seeking to launch an invention, a product, or a great new idea into a receptive marketplace.
Who is the author of What Every Angel Investor Wants You to Know?
Brian Cohen is a bestselling author. He was the first investor in Pinterest and numerous other industry leading startups.
John Kador is a bestselling business author and ghostwriter on leadership, finance, entrepreneurialism, and business ethics. He's the author or co-author of over 25 books, including What Every Angel Investor Wants You to Know, The Manager's Book of Questions, and Effective Apology.
How long is What Every Angel Investor Wants You to Know?
- Print length: 256 pages
What genre is What Every Angel Investor Wants You to Know?
Business, Entrepreneurship, Nonfiction
What are good quotes from What Every Angel Investor Wants You to Know?
“We are now seeing angels outsourcing due diligence to entities they assume will do it better. In one case, the entity is Y Combinator, the elite accelerator. Yuri Milner’s DST Fund and Ron Conway’s SV Angel fund recently announced that they will invest in every single startup coming out of Y Combinator. The seed rounds will provide $150,000 to every single one of the 40 startups that wants it, without any due diligence on their own part whatsoever. The capital is in the form of convertible debt with no cap and no discount. The loan will convert when and if the startup raises a proper angel or VC capital round at the same valuation that’s set in the round. Most convertible debt has a valuation ceiling and also gets a discount on conversion. The angels are banking on the premise that Y Combinator, in vetting the startups it stewards, has performed satisfactory due diligence. Milner has effectively shut out any other angel investors by offering such attractive terms. It’s almost free money. I’d be surprised if any of the 40 startups in each Y Combinator class decline such an offer.”
“According to the Global Entrepreneurship Monitor (Babson College and the London Business School), friends and family investing annually accounts for $50 to $75 billion in early stage capital in the United States. This is two to three times the amount of money invested annually by either angel investors or venture capitalists.”
“Loans are easier than equity. I generally think that offering debt is better than offering equity. When you offer F&F members equity, they are legally your business partners. Do you really want Uncle Freddy as a business partner? It’s better to treat such investments as loans. But if your F&F members insist on equity, try to make it nonvoting stock, so they can’t insist on being consulted on every management decision.”
“Seventy-five percent of success is predicted by your optimism level, your social support, and (perhaps most of all for entrepreneurs) your ability to see stress as a challenge instead of as a threat, according to Shawn Achor in a fabulous TED talk called “The Happy Secret to Better Work.”
“firstrate team with a second-rate idea will always outperform a second-rate team with a first-rate idea.”
“Burning bridges with one investor can cut off multiple sources because of their extensive networks.”
“The problem is, when are we ever satisfied?”
“Passion is an excellent guide for choosing hobbies but less so for choosing a business.”
“While some groups charge a fee for founders to make pitches, I don’t think entrepreneurs should be asked to pay anything. The angel investors are certainly rich enough and smart enough to get sponsors to offset any administrative costs.”
“Depending on the circumstances, they will invest either in the form of a Convertible Note (but with a cap on valuation),”
“Startups often make a fatal assumption when they attend presentations, business plan competitions, or demo days. They assume they are basically invisible until they take their place on the stage. Big mistake. The truth is, investors are observing you. We learn as much from watching your off-stage behavior as your canned presentation. Here’s a good way to go. Resolve that your formal presentation starts the moment team members leave their homes or offices and ends only when the last team member returns. At all other times, you are “on.” Assume the microphones are always on and someone has a camera phone on you at all times. Act like a disciplined team at all times. Watch what you say in the elevator or in the bathroom. You can’t believe the damaging stuff I’ve heard in bathrooms. Wait to debrief until you get back to the privacy of your office.”
What are the chapters in What Every Angel Investor Wants You to Know?
Chapter 1: Angel Investing Is a Contact Sport
Chapter 2: Early Stage Investing and Why Angels Are Your New Best Friend
Chapter 3: Let's Get to Know Each Other
Chapter 4: What I'm Looking for in an Enrepreneur
Chapter 5: What I Look for in the Pitch
Chapter 6: Every Business Starts with a Belief
Chapter 7: Investor Raising vs. Money Raising
Chapter 8: Don't Hurt the One Who Love You
Chapter 9: Going Belly to Belly with Your Customer
Chapter 10: Due Diligence and Do Diligence
Chapter 11: Accelerators, Incubators, and Crowdfunding
Chapter 12: It's All About Treammanship
Chapter 13: Getting to No Is Just as Improtrant as Getting to Yes
Chapter 14: Iterating the Startup
Chapter 15: Baking in the Exit from the Beginning
Chapter 16: Due Diligence Checklist
Chapter 17: The New York Angels Term Sheet
Chapter 18: Five Indispensable Tools Founders Can Use to Do Due Diligence on Angels
Chapter 19: Own Your Venture Equity Simulator
Tal Gur is a location independent entrepreneur, author, and impact investor. After trading his daily grind for a life of his own daring design, he spent a decade pursuing 100 major life goals around the globe. His most recent book and bestseller, The Art of Fully Living - 1 Man, 10 Years, 100 Life Goals Around the World, has set the stage for his new mission: elevating society to its abundance potential.