For small firms looking to grow, angel investors can help provide needed financing. These affluent individuals typically fund companies seeking $250,000 to $2 million, usually in exchange for an ownership stake in the business. In addition to a capital infusion, angels may bring business acumen to their portfolio companies, says Bill Payne, an angel investor in Henderson, Nev.
We asked Mr. Payne for a list of books and Web sites for entrepreneurs looking to familiarize themselves with angel investing. Here are his picks:
“The Art of the Start: The Time-Tested, Battle-Hardened Guide for Anyone Starting Anything” by Guy Kawasaki
“This is a great book to help entrepreneurs understand what investors are looking for in a company to invest in. He refers to the 10/20/30 rules. When you’re making a PowerPoint presentation to a bunch of angel investors, don’t make more than 10 slides, don’t take more than 20 minutes, and since angel investors tend to be older, make the minimum font on your slide 30.”
EVenturing.org
“Funded by the Kauffman Foundation, this site is targeted at high-growth entrepreneurs. Lots of information on the capital food chain for entrepreneurs, pitching to investors, and a great search engine useful for information on entrepreneurs who tend to gather info in a just-in-time basis. The search engine is very useful in just-in-time problem solving for entrepreneurs.”Angel Capital Association
“Entrepreneurs can find a directory of angel groups in their locale interested in funding early-stage companies. Entrepreneurs should go to the Web sites of those groups in their region and familiarize themselves with the process they use to fund companies.”Photo by MSDesigns.
Helen Russo on May 29th, 2008 at 5:03 am
Hello:
Could you tell me what a investorl is?
Thank you
Helen