THE ANGEL INVESTOR’S HANDBOOK

How to Profit from Early-Stage Investing


Gerald A. Benjamin

Joel Margulis

Identifying a high-profit potential company is the requirement of successful investing; identifying a deadbeat venture, a necessity. In their book, “The Angel Investor’s Handbook: How to Profit from Early-Stage Investing”, Benjamin and Margulis guide entrepreneurs through the investing process, encouraging smart funding of quality ventures in the high-risk financial market.

In their book, Benjamin and Margulis highlight the crucial stages of capital investing

  • Identifying venture companies with good potential, irrespective of quality of market
  • Conducting detailed due diligence to avoid unfortunate venture investments
  • Efficient management of projects for high returns and risk reduction.

“The Angel Investor’s Handbook” is a definitive guide to early-stage investments

The book contains highly informative data on actual venture transactions, including term sheets and documents verifying deals.

Benjamin’s and Margulis’ work promotes angel investor contribution to financial economy, fortifying angel investors to invest in private equity and beyond the stock market. According to Benjamin and Margulis, angel investing is the foundation of countless fresh businesses, creating an outstanding 20 million new employment opportunities; 67% of the total jobs were created between 1979 and 1993, with 12 million more jobs added in 1997. Benjamin and Margulis trace the inception of 27% of new jobs by small ventures. Angel investors were found to provide 30% more finance than owner’s private funding in the first 3 years of business development

The authors share some interesting facts about small companies in their book. Small companies constitute 99% of the total number of companies in the United States, supplying 51% of the total domestic product and 47% of total market sales. Small companies also constitute 52% net worth of businesses in the US. Data provided by the Bureau of Labor Statistics show that 60% of employment opportunities created between 1994 and 2005 were by small companies. Small firms also aided 55% growth of all new technological developments

How angel investors target fresh and substantial growth potential businesses, forms the basis of Benjamin’s and Margulis’ entrepreneurial advice. Financial transactions with start-ups involve equity securities. Investors also add tremendous expertise to a company’s management, aiding product and service development and marketing and sales.

An angel’s market experience is a value addition to a new company


Gerald A. Benjamin

Based in San Francisco. He is the founder and senior managing partner of the largest national business angel network – International Capital Resources. A former business advisor for entrepreneurs, Benjamin has served in the investment industry for more than 25 years. His long career has seen him coauthor countless books, including impressive writings on angel investing.

Joel Margulis

A teacher of writing in San Francisco State University, has written several books. He has also coauthored 2 books on angel investing