Attracting Capital From Angels

I recently finished “Attracting Capital from Angels” by Brian E. Hill and Dee Power. It’s well written and well organized, which translates into a pretty quick, concise read.

Between the covers you’ll find a wealth of information ranging from a 30,000 foot view of trends in angel investing through to the minutiae of negotiating a term sheet. Most of this was review for me, and/or simply confirming my own experiences. The book focuses on the situation in the USA, requiring any Canadian reader to look at certain sections from a north-of-the-49th perspective.

For me, the real value came in the second last section, which dealt with “Living with an Angel.” As I welcome upwards of 20 or more angel investors into my business, I am definitely looking for knowledge on how to manage expectations while keeping everyone fully informed. I’m also interested in systems and processes that will help streamline all aspects of an effective relationship.

I’ll also include two conflicting reviews from Amazon.com, starting with the pro, then moving to the con.



From Amazon.com:
A real gem! In over 35 years as a serial entrepreneur, investment banker and angel investor, I've come across dozens of books addressing various aspects of raising money, writing a business plan and/or finding investors. Most rehash existing theories and consolidate existing sources of research and advice on the topic. Brian and Dee have done a remarkable job of gathering fresh information through direct interviews, original essays and new surveys. The result is a truly enlightening, useful and very readable work which should become The Bible for anyone thinking of starting a business, financing an existing one, or investing as an angel themselves.
A must read even for someone just interested in learning more about Angel Investing, a little known area of our economy which just happens to be one of the most powerful drivers of our free enterprise system.
Bob Geras,
President
LaSalle Investments Incorporated



Also from Amazon.com:
I am planning a new business, and payed for this book, along with express shipping, since it is very topical. I feel cheated since the book is completely worthless. My only consolation is writing this review.
There is not enough information in this book to make a newspaper article. Aside from very short interviews with Angels that are scattered randomly among the pages, the book consists of constant repitition of a few very simple ideas:
1. Angels invest their own money, VC invest other peoples
2. Some Angels may be able to help you with your business. Some may not.
3. Don't waste potential investors time, make sure your business plan is short and reasonable.
Thats the whole book. Many other reviewers (who signed themselves "A Reader") praised this book. I have to question their impartiality.
If you are planning a new business and looking for investors, I can offer you some free and valuable advice. Don't waste your time reading this book.
Daniel Ginensky