Enter your mobile number or email address below and we'll send you a link to download the free Kindle App. Then you can start reading Kindle books on your smartphone, tablet, or computer - no Kindle device required.
To get the free app, enter your mobile phone number.
Angel Investing: The Gust Guide to Making Money and Having Fun Investing in Startups Hardcover – April 28, 2014
The Amazon Book Review
Author interviews, book reviews, editors picks, and more. Read it now
Frequently Bought Together
Customers Who Bought This Item Also Bought
From the Inside Flap
Every year in America, over 600,000 new businesses start up and hire their first employees. Many will fail, but some of them will become the legendary businesses of the future, transforming industries and making millions for the angel investors who helped fund them in their early days. Angel investing, once the exclusive province of multi-millionaire high-rollers, has now entered the mainstream, with more than $20 billion being invested annually by individual investors in the US alone. Contrary to popular belief, access to these high risk/high return investments—and success in startup investing—doesn’t have to be a matter of luck or connections. Angel Investing: The Gust Guide to Making Money & Having Fun Investing in Startups shows how smart investors with the right strategy and a long-term perspective can achieve annual returns of 25 percent or more from a well-designed angel portfolio.
Written by David S. Rose, the founder of Gust—the global platform that powers the world of organized professional angel investing—Angel Investing is a comprehensive, entertaining guide that walks readers through every step of the way to becoming a successful angel investor. It is illustrated with stories from among the 90+ companies in which David has invested during a 25 year career as one of the world’s most active business angels and includes instructions on how to get started, how to find and evaluate opportunities, and how to pursue and structure investments to maximize your returns.
From building your reputation as a smart investor, to negotiating fair deals, adding value to your portfolio companies and helping them implement smart exit strategies, David provides both the fundamental strategies and the specific tools you need to take full advantage of this rapidly growing asset class. He details the advantages of joining an angel group, explains how seed and venture funds can help leverage an investor’s resources, and reveals how recent regulatory changes and new online platforms are making startup investing accessible to millions of Americans.
Making money is no longer about sitting back and reading stock listings, David says. It is now about being part owner of an exciting startup that can be fun and financially rewarding. Angel Investing teaches investors how to carefully select and manage investments, establish a long term view, and approach angel investing as a serious part of an alternative asset portfolio while also enjoying being an integral part of an exciting new venture.
From the Back Cover
PRAISE FOR ANGEL INVESTING
“The world of entrepreneurial startups is where the most exciting and creative action is happening in today’s business world, which is why I was a strong supporter of the JOBS Act of 2012. No wonder millions of people are wondering how they can get involved as investors. There’s no better place to start than by reading David S. Rose’s Angel Investing.”
—U.S. SENATOR CHARLES E. SCHUMER, Senate Finance Committee
“From the best methods for finding and picking tomorrow’s big winners to proven techniques for adding value to any business you invest in, Angel Investing provides readers with everything they need to know to get started in this fascinating, fun—and lucrative—business arena.”
—DAVID BACH, #1 New York Times bestselling author of The Automatic Millionaire and Start Late Finish Rich, Angel Investor
“As an angel investor and a long-time fan of David S. Rose, I was delighted to hear he finally captured his wit and wisdom in the pages of a book. David’s witty stories and angel investing principles — as well as his unsurpassed knowledge of his field — are teaching me so much more about investing than I’ve learned over the years doing it!”
—BARBARA CORCORAN, Real Estate Mogul, Shark Tank star, Angel Investor
“This is the most comprehensive and readable guide to angel investing ever written. The chapter on valuation and expectations lays out a clear framework for understanding one of the least well-known pitfalls in the angel world. And its emphasis on creating a win-win relationship with the entrepreneur is at the heart of being a long-term successful angel—and continuing to see the best deal flow. I recommend this book to anyone even thinking about making or receiving angel investments.”
—HOWARD L. MORGAN, Founding Partner, First Round Capital
“Angel Investing is an engaging, easy read, full of real stories and hard numbers, actual cases and a whole lot of good advice. David S. Rose brings tons of real-world knowledge to the subject that makes this required reading for every new angel.”
—TIM BERRY, Author of Business Plan Pro, Entrepreneur, Angel Investor
“Anyone with a checkbook can be an angel investor, but it takes insight to do it well. David S. Rose has written a terrific new book that will help would-be angels make money, rather than lose it. From explaining the value of diversification, to tips on evaluating deals, to offering up plans to attract good deals, Angel Investing will help you move from a money-losing amateur to a money-making professional angel. And if you’re an entrepreneur looking for angel money, you should read this book too. It will help you understand what knowledgeable angels are seeking and how they will evaluate you.”
—SCOTT SHANE, author of Fool’s Gold? The Truth Behind Angel Investing in America
Top Customer Reviews
It has a nice balance between technical analysis and anecdotal wisdom.
Now, I want to emphasize that on the subject of investing, you should not rely on any single book. You should get a variety of perspectives because no single author is supremely authoritative, and there is more than one legitimate set of strategies and methods. But you can rely on Rose's book as the first one you read, as it offers a balanced introduction for serious investors.
Some of the statistics Rose cites about ROI come from research by Robert Wiltbank and others who surveyed accredited investors who were members of angel groups. So non-accredited investors' returns were not considered. I dug deeper into these studies, and found that respondents to Wiltbank's surveys were self-selected; we can presume that investors whose returns were poor were less likely to respond to the surveys. Keep these caveats in mind when you read the stats that Rose reports.
When you read this book with an entrepreneur hat on, you understand why investors ask certain questions. You understand why certain companies get investments and others don't, and you also get a better sense of what types of investors you want to find.
If you are an entrepreneur, and you want to understand the WHY behind all of the investment process so that you have the best chance of getting money from an investor like David S. Rose, then this is the book to read. And if you are lucky enough to have gotten funding and want to know how to keep your investors excited, this is also a great book for you.
The book is a great read. The stories and lessons are engaging, entertaining, and it will keep you wanting more.
Author David S. Rose is a veteran angel, founder of the New York Angeles investor group, and CEO of the online platform Gust, which connects moneyed members to entrepreneurs. In Angel Investing, Rose shows the novice the ropes, covering basics such as the differences between equity investment and lending; and among accelerators, angel investor groups, and venture funds. Readers will learn how to evaluate an entrepreneur’s potential, what to realistically expect from their portfolios, and how to be actively engaged in a business without becoming a nuisance. Rose also discusses what to expect in case of an acquisition, where your company is bought out by another one, and bankruptcy, where your chances of losing your entire investment is high. I particularly liked the author’s warning against trying to maximize financial return and social impact simultaneously. While it’s a nice idea that we could make money while being “do-gooders,” Rose points out that each project needs to focus on one goal.
Sounds good so far? Well, for those who would rush out and buy this book as a sure-fire way to getting rich, I want to add two words of caution. First, this book was written for Accredited Investors (i.e., people with mega-bucks who are permitted by the government to blow large amounts of money on start-ups that will in all likelihood fail). So you might be thinking, “What’s in it for the Average Joe?” Well, most of us at some time or another have been asked – or will be asked – to participate in a “Friends and Family” investment round. Now, armed with this book, you can learn to think like the multi-millionaires and billionaires and critically evaluate a business’ potential before dropping your life savings into your nephew’s big idea.
Second, angel investing is definitely more of an art than a science. It’s not a given which firms will be successes and which ones failures. (Don’t believe me? Check out the Apple chapter in the documentary film Something Ventured.) Most of the statistics are “guesstimations” based on Rose’s experience, not backed by hard data, nor expected to ever be. He talks about what generally happens, what entrepreneurs usually do, what problems often arise, etc., and builds his recommendations from this. But few things, aside from a few laws, are really set in stone. While it might seem like I’m being a “party pooper,” note that this is reality for any kind of investment or speculation – including Bitcoin, people! Angel Investing won’t eliminate risk, but it can teach you how to be a better informed investor.
Disclaimer: I received a copy of this book as a First Reads giveaway winner on GoodReads.com. There was no obligation to write a review.