Besides our own articles and teaching materials, we have selected some of our favorite books on angel investments and compiled them below.
infoDev is a multi-donor program in the World Bank Group’s Trade & Competitiveness Global Practice that supports entrepreneurs in developing economies. They released a very handy guide for creating an angel investor group, which is an adaptation of the Ewing Marion Kauffman Foundation’s 2004 guidebook.
The book covers all stages of setting up a business angel organization: Reviewing your assessment, building the framework, launching group operations, identifying deals and investing as well as follow-on relationships and activities.
You can download the book here.
They deliver more capital to entrepreneurs than any other source. And they often receive an incredible return on their investments. They’re angel investors, some of the most important–and least understood–players in business today. The United States has close to three million angels, whose investments in startups exceed $60 billion per year. Some of our most successful companies were funded by angels–companies like Ford, AOL, and Amazon.com. But until now, little has been written about these angels, due in part to their preference for anonymity. Angel Investors provides an inside look at who these angels are and how they operate. It also shows would-be angels and entrepreneurs how best to find each other.
Becoming a successful angel Angel investors are the most important source of capital for UK companies seeking up to £2 million in funding. This importance to the British economy is recognised by the government, which means that attractive tax breaks are available to business angels. Added to this, helping start-up ventures with money and mentoring can be satisfying and fun. If you have considered taking advantage of these tax incentives by making angel investments, or find the idea of providing capital to entrepreneurs – and the potential financial rewards of doing so – appealing, then your starting point should be How to Become a Business Angel. Richard Hargreaves has 40 years’ experience making investments in unquoted companies and as such is well placed to guide those who are new to the area through the process. He knows what to look for in potential deals, the risk-reward structure angels should demand, the times when legal advice must be taken and the pitfalls to be wary of. In a concise, readable manner, he provides practical guidance to all aspects of investing in unquoted companies and gives numerous invaluable case studies from real-life deals so you can see how angel investments work in practice. You will learn: – Whether angel investing is right for you – How to find and assess opportunities – What investment terms angels require – How to manage investments you have made and resolve problems that arise – How to exit from investments – Lessons from real-life deals that went well, and badly, through detailed case studies If you are looking to build a portfolio of investments in unquoted companies, wish to learn more about the technical side of investment, such as share capital structures and investors’ legal rights, or wish to invest your capital in entrepreneurial ventures in the most effective for both you and the entrepreneurs, then this book is for you.
Many of today’s high-net-worth investors are turning their attention to early-stage investing in emerging companies. They know just how successful and lucrative funding a start-up venture can be. Savvy angel investors can foresee distant but potentially huge returns from pre-IPO companies. There are scores of hungry entrepreneurs in search of capital and lots of money to be invested. But, matching the right entrepreneurs with wise investors, so that both can profit, is the challenge in new enterprises.
Gerald Benjamin and Joel Margulis demonstrate that the real pitfall for potential investors is an incomplete understanding of the complexities of early-stage investing. At the same time, the angel capital market offers few mechanisms for bringing investors and entrepreneurs together, while securities regulations restrict communication between sophisticated investors and promising new businesses.
So, where do the uninitiated start, and how do they separate the wheat from the chaff? In this ground breaking work, Benjamin and Margulis offer angel investors a hands-on manual for profiting from early-stage, private equity deals. They show how to develop investment criteria and overall game plans, locate viable investment opportunities, assess and manage risks, negotiate the most favorable deal terms, conduct thorough due diligence, and plan the all-important exit strategy.