What Every Angel Investor Wants You to Know audiobook cover - An Insider Reveals How to Get Smart Funding for Your Billion-Dollar Idea

What Every Angel Investor Wants You to Know

An Insider Reveals How to Get Smart Funding for Your Billion-Dollar Idea

Brian S. Cohen and John Kador

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Entrepreneurship

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What Every Angel Investor Wants You to Know
Finding the Right Investor+
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Proving Your Worth+

Quiz — Test Your Understanding

Question 1 of 8
Why does the book compare the relationship between an entrepreneur and an angel investor to a marriage?
  • A. Because they require a legally binding contract that is difficult to dissolve.
  • B. Because it is a long-term commitment where both parties stand by each other and share assets.
  • C. Because the investor will dictate the daily operations and personal decisions of the founder.
  • D. Because founders are expected to share their personal finances and bank accounts with the investor.
Question 2 of 8
What are the recommended constraints and key elements for an effective elevator pitch?
  • A. Under 150 words, lasting less than 30 seconds, and mentioning the specific problem the product solves.
  • B. Exactly 300 words, lasting one minute, and focusing entirely on the founder's background.
  • C. Under 50 words, lasting less than 10 seconds, and focusing solely on the requested investment amount.
  • D. A detailed 5-minute presentation covering financial projections and exit strategies.
Question 3 of 8
How should a founder handle their start-up's existing issues or flaws when communicating with an angel investor?
  • A. Hide them until the investment is secured to avoid scaring the investor away.
  • B. Downplay them and focus strictly on the positive market projections.
  • C. Blame the issues on previous team members to show strong management standards.
  • D. Be upfront about them to demonstrate honesty and convince the investor of your integrity.
Question 4 of 8
Why does the author suggest that entrepreneurs should appreciate receiving a quick 'no' from an investor?
  • A. It means the investor is testing your resilience and will likely say yes later.
  • B. It saves both parties time and prevents the entrepreneur from being stuck in a useless state of limbo.
  • C. It allows the entrepreneur to immediately lower their company valuation to attract others.
  • D. It legally frees the entrepreneur to pitch to the investor's direct competitors.
Question 5 of 8
What does the author emphasize as a crucial indicator of a team's entrepreneurial skills?
  • A. Having degrees from prestigious Ivy League universities.
  • B. The ability to write complex code and develop the product without outside help.
  • C. Demonstrating prior entrepreneurial experience, even if those past ventures ended badly.
  • D. A flawless track record of highly profitable businesses.
Question 6 of 8
According to the text, what must founders balance their 'big ideas' and vision with?
  • A. A strong execution plan that includes facts, figures, and profit margins.
  • B. A massive marketing budget to ensure rapid customer acquisition.
  • C. A willingness to pivot the business model every few months.
  • D. An aggressive strategy to buy out immediate competitors.
Question 7 of 8
Why is having a clear exit strategy so important to angel investors?
  • A. It proves that the founders are ready to retire early and hand over the reins.
  • B. It allows the investor to legally take over the company if the founders fail.
  • C. It guarantees that the startup will eventually go public on the stock market.
  • D. It is virtually the only way for the investor to cash out and make a return on their equity.
Question 8 of 8
When asking for capital, what specific actionable advice does the book give regarding the requested funds?
  • A. Ask for a lump sum without specifying details to maintain financial flexibility.
  • B. Be specific about how the money will be used, such as for salaries or R&D, rather than paying off bank loans.
  • C. Request slightly more than needed to account for unexpected inflation and market downturns.
  • D. Plan to use the majority of the investment to pay off existing debts to show financial responsibility.

What Every Angel Investor Wants You to Know — Full Chapter Overview

What Every Angel Investor Wants You to Know Summary & Overview

What Every Angel Investor Wants You to Know (2013) offers start-up entrepreneurs tips on what to look for in an investor – and how to actually get an “angel” to invest. With solid preparation and a good understanding of what motivates an investor, any entrepreneur can secure financing for her next big idea.

Who Should Listen to What Every Angel Investor Wants You to Know?

  • Founders of start-ups and entrepreneurs
  • Investors looking for the next great idea
  • Anyone seeking funding for a project

About the Author: Brian S. Cohen and John Kador

Brian S. Cohen is an author, social entrepreneur, technology media strategist and chairman of The New York Angels, an investor group that has invested over $50 million in early-stage tech start-ups.

John Kador is a management-book author, consultant and speaker. His book, Mending Fences, was translated into a number of languages.

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