Susan L. Preston 
Angel Financing for Entrepreneurs 
Early-Stage Funding for Long-Term Success

Angel Financing for Entrepreneurs will give you the
information you need to understand how angel investors think, as
well as how to identify investor expectations, understand the
investment analysis process, and prepare for post-investment
requirements. Written by Susan Preston, an experienced angel
investor, worldwide speaker and consultant on angel financing, and
former Kauffman Foundation Entrepreneur-in-Residence, this hands-on
resource, explains the factors that determine how private equity
investors spend their money and what they expect from
entrepreneurs. For example:

* Most venture capitalists do not invest in seed or start-up
financing rounds

* Investors typically require seasoned management, with
successful start-up experience

* Investors are looking for entrepreneurs with passion for their
ideas and the willingness to take and apply sound advice

* Business plans must be well-written with detailed financial
projections that extend 3-5 years

* Investors are looking for a clear path to profitability in the
business model

* Entrepreneurs must have developed a corporate structure that is
clean and uncomplicated

* And much more

Table of Content

Foreword by Honorable Lorrie Keating Heinemann vii

1 Introduction 1

2 The Basics About Angel Investors 5

3 Private Equity Investing 30

4 Understanding Your Funding Needs 55

5 Looking for Angels and What Angels Are Looking For 77

6 Preparing for Investors 93

7 Making the Match 112

8 The Investment Process 133

9 After the Investment 155

Appendixes

1 Glossary of Terms Related to Private Equity and Debt Financing 165

2 Non-Disclosure Agreement (Mutual) 193

3 U.S. Securities and Exchange Commission Regulation D 197

4 Angel Organizations in the United States and Canada 213

5 Angel Organizations in Europe 295

6 Due Diligence Checklist 301

7 Due Diligence Interview Questions 309

8 Convertible Promissory Note 315

9 Angel-Entrepreneur Internet Matching Sites 321

10 Experts’ Profiles 343

References 353

Acknowledgments 355

About the Author 357

Subject Index 359

Business, Angel Organization, and Web Site Index 373

About the author

the author

Susan L. Preston is recognized as an international expert in, and lecturer on, angel financing, and has been an Entrepreneur-in-Residence with the Ewing Marion Kauffman Foundation for several years focusing on issues related to angel investors and angel organizations. Her previous book on angel organizations was published by Kauffman Foundation. She is also a founder of Seraph Capital Forum, the first all-women angel investment group in the U.S. Susan is also the architect of legislation for a Federal income tax credit for private equity investing to support development of young companies through providing angel investors with tax incentives.