Winning Angels

Winning Angels reduces the art of angel investing into a science and opens the doors to those angels who have limited experience, whileaugmenting the experience of seasoned investors. Entrepreneurs will benefit by reading and reflecting on the contents of the book before they seek funding. They will gain access to the mindset of winning angels, and how best to win them over, as well as finding information on how to value, structure and harvest their deals.

Contents

Acknowledgments vi

Foreword x

Part I The angel investor and investing strategy 1

• 1 The angel investor learning curve 3
• 2 Creating your angel investing strategy 5
• 3 The angels in this book 24
• 4 The seven fundamentals 26

Part II The seven fundamentals of early-stage investing 29

Sourcing: 1st fundamental 31

• 5 Start section 33
• 6 Generating deal flow 35
• 7 Activities in detail 37
• 8 Things to think about 56
• 9 Winning angels 2000 61
• 10 Special sections 66

Evaluating: 2nd fundamental 73

• 11 Start section 75
• 12 The Harvard framework 77
• 13 The expanded framework 79
• 14 Risk 105
• 15 Angel strategies for winning and speed 107
• 16 Rejection section 110
• 17 Things to think about 114
• 18 Winning angels 2000 120
• 19 Special sections 127

Valuing: 3rd fundamental 143

• 20 Start section 145
• 21 The five approaches to valuation 146
• 22 The 12 methods 149
• 23 Interelate example 157
• 24 Four levers of early-stage returns 163
• 25 Things to think about 166
• 26 Winning angels 2000 168
• 27 Special sections 171

Structuring: 4th fundamental 179

• 28 Start section 181
• 29 Two camps 183
• 30 Deal terms 185
• 31 The three fundamental structures 189
• 32 Future rounds 198
• 33 The VC perspective 202
• 34 Winning angels 2000 205
• 35 Special sections 208

Negotiating: 5th fundamental 223

• 36 Start section 225
• 37 Angels who don't negotiate 226
• 38 Angels who do negotiate 228
• 39 If you are going to negotiate 229
• 40 Winning angels 2000 235
• 41 Special sections 239

Supporting: 6th fundamental 245

• 42 Start section 242
• 43 The five participation roles 249
• 44 Value events 254
• 45 The four types of start-ups 257
• 46 Things to think about 264
• 47 Winning angels 2000 271
• 48 Special sections 276

Harvesting: 7th fundamental 285

• 49 Start section 287
• 50 The seven harvesting methods 289
• 51 Negative harvests and other exits 299
• 52 Harvesting value events 303
• 53 Things to think about 306
• 54 Winning angels 2000 309
• 55 Special sections 313

Part III Angels and other investors 325

• 56 Biographies of the angels interviewed in this book 327
• Bibliography 354
• Glossary 355
• Index 361