Preface: Finding private investors is about building relationships with self-made millionaires, ninety percent of whom are worth between one million and ten million dollars, people who may have owned their own businesses, and are successful because they know what to invest in and wish to broaden their investments.
It should be common sense that finding wealthy people to work with is how you access private capital. Im not sure why people worth between one and ten million in US dollars would choose to go into funding ventures at an early stage and tie up their capital without a clear plan of an IPO cash-out but the book claims those are the people who are angel investors. For those folks that think the downturn in the economy is new, Ive felt it hasnt been good for a longtime, since the tech bubble burst and heres commentary from the book that discusses the economy (the book was released in 2005).
Page Xxiii: Such companies also possess the potential for jobs in our recessionary and recovering economy, both nationally and, particularly regionally. Large funds must make large investments in order to put their money to work.
Although the authors are experienced in the field and have created International Capital Resources (a funding exchange/matching platform), the book doesnt seem to offer a lot to hold a readers attention. The enlightening part can be summed up in the introduction: It is a part of probability that many improbable things will happen. (Aristotle, poetics)
Companies never go broke if they always have enough cash. Since the only time companies go broke is when they run out of cash, really work on your cash projections, your cash flows. Thats the overwhelming concern to raising angel capital or accessing any investor capital.