|
Many high net worth individuals are reluctant
to invest in early stage entrepreneurial ventures because they
are unsure of how to evaluate the investment or how to manage
their involvement. Even those that do undertake a limited number
of investments are unsure how to best structure the deal or
when to intervene to enure their investment is protected. This
book sets out:
|
|
||
|
Angels typically achieve 17 - 20% return on their investments in early stage ventures across a portfolio of investments, although around 50% will lose money, some will return very high profits. Tom McKaskill sets out a systematic and pragmatic process for Angel investment in his new book. He draws extensively on his own experience as a CPA, entrepreneur and academic as well as his personal experience with Angel Investors, his experience raising venture capital and his expertise in how to sell private companies. His approach brings a systematic and comprehensive approach to Angel investing. Tom combines his personal and professional knowledge with advice from successful Angels, business advisors and venture capitalist to create his unique Alignment and Awareness Index, the Venture Potential Index and the Operational Development Index. Successful Angels know that investing in entrepreneurial ventures is more than just writing cheques. There is an active involvement of the Angel at all aspects of the business. Successful Angel investing is active investing that requires the Angel to find the right investments that suit their personal knowledge, time and interests. Angel investors enjoy what they do but they also understand the risks involved. Those risks are substantially reduced with a systematic approach to the selection, management and harvesting of their investments. In 10 crisp chapters, Professor McKaskill sets out his guide for Angel Investors. Part A: Angel Investing
Part B: Angel Investing Indices
Angels provide an essential funding stage in the development of many emerging companies however it is often done without adequate attention to the necessary attributes of sustainable profitability and harvesting. Currently, once the investment has been made there are no clear guidelines for the Angel on where his or her contribution should be focused. Angels do not manage the business, they act as mentors and coaches to the management team. Angels should be preparing the business for sustainable profitable growth or for the next round of funding, probably from a venture capital firm. Lastly, the Angel must focus on how they get their money out of the investment - the harvest" Angel Investing shows how significant wealth can be achieved by private individuals through investments in high growth early stage entrepreneurial ventures. Angel Investments historically have
been the domain of the wealthy few. This book uncovers the
secrets of Angel Investing which will allow many high net
worth individuals to participate in this high return investment
class. Most wealthy individuals mistakenly believe that Angel Investing is beyond their means or outside their range of experience. But with the emergence of Angel Networks and Angel Funds, the majority of wealthy individuals can now participate in this class of investment. This book shows how! The purpose of Angel Investment is to allow wealthy individuals the opportunity to invest in higher risk emerging companies to achieve a better return on their money than if they invested in the stock market. Because the investment is being made in a private company and they are often dealing with an immature management team, an emerging market and products that still have to prove themselves, Angels invest under an active management process. This provides support for the entrepreneurial team but also allows the Angel to intervene to correct a situation going bad. They are able to replace management, change the shareholding of the founders and, if necessary, sell off the business to correct the situation. Angel Investing explains how Angels operate and identifies how they source deals, evaluate potential investments and then mange the risks in those investments. The book includes a set of investment criteria for Angel Investment which will enable the Angel to carefully evaluate the risk and profit potential in a business. It also sets out a range of management processes that can be used by the Angel to enhance the resilience and profitability of the venture. Few businesses are able to meet the investment criteria but for those that can, this book sets out a step-by-step process for Angel Investing. "Angels play an active role in facilitating the growth of early stage ventures through mentoring, coaching and providing growth financing. But they need to invest with care. A systematic evaluation process ensures that they gain the support of the entrepreneur and the venture stakeholders, assess the risks and the potential of the investment and provide the right level of intervention to make the business successful" Angel Investing offers the Angel advice on - WHY PARTICPATE IN ANGEL INVESTING? IS IT WORTH IT? HOW DO I GENERATE A DEAL FLOW? HOW DO I EVALUATE IF THE VENTURE
IS WORTH INVESTING IN? WHAT VALUATION TECHNIQUE SHOULD I
USE? HOW SHOULD I STRUCTURE MY INVESTMENT?
WHEN SHOULD I USE PROFESSIONAL ADVISORS? HOW DO ANGEL NETWORKS AND ANGEL FUNDS
WORK? TESTIMONIALS "Tom's book on Angel investing
provides a thorough overview of the topic with some valuable
personal stories. I tested the Angel Investing Index on a
business that is currently looking for Angel Capital. The
Founding Board found it to be an invaluable tool for bringing
together the different perspectives sitting around the boardroom."
|
||||
 |
 |
|||
|
© Tom McKaskill 2007
|
||||