Angel Investing

Angel Investing – Mark Van Osnabrugge

Many of the most successful companies began with funding not from banks or venture capital firms, but from angel investors: wealthy individuals who invest their own money in early-stage businesses. Yet the world of angel investing has often been informal and difficult for entrepreneurs to navigate. In Angel Investing: Matching Startup Funds with Startup Companies, Mark Van Osnabrugge and Robert J. Robinson, researchers in entrepreneurial finance, offer a comprehensive guide to this important source of capital.

Drawing on research and interviews with investors and entrepreneurs, the authors explain who angel investors are, what motivates them and how they differ from venture capitalists. They describe the role angels play in the startup ecosystem, the types of companies they typically fund and the amounts they invest.

For entrepreneurs, the book offers practical guidance on finding angel investors, preparing a business plan, presenting to investors, negotiating terms, structuring deals and building productive relationships with investors after the deal is closed. For investors, it explains how to find and evaluate opportunities, conduct due diligence, manage risk, add value to portfolio companies and plan exits.

The authors also discuss angel networks and groups, and the ways in which angels and venture capitalists can work together.

Thorough and practical, Angel Investing is a valuable resource for entrepreneurs seeking funding, individuals considering investing in startups and students of entrepreneurship. Readers should note that the startup funding landscape has changed considerably since publication, and the book is not investment advice.