FOR IMMEDIATE RELEASE

Contact: Rosa Whitten
The Planning Shop
Tel: 650-289-9120
Email: Rosa@planningshop.com

The Secret to Finding Money

Finding an Angel Investor In A Day: Get it done right, get it done fast!
Foreword by Kinko’s founder Paul Orfalea
The Planning Shop
with Joseph R. Bell

PALO ALTO, CA, May 8, 2007—Angel financing is expanding at an extraordinary rate—over $23 billion was invested by angel investors in 2005 alone! Angel investors are individuals or groups who invest their own money in new and growing businesses.

And it’s easier to find an angel investor than ever. There’s been an explosion of angels and angel groups in virtually every community in the U.S. Now, entrepreneurs who might not have thought they could secure angel financing have a shot at it.

Recognizing the need for businesspeople to understand how to quickly locate and successfully pitch investors, The Planning Shop, publisher of books for entrepreneurs, today introduced the latest book in its In A Day series, Finding an Angel Investor In A Day: Get it done right, get it done fast!

The book provides entrepreneurs with the first simple, step-by-step guide to get funding to start or grow a business.

Entrepreneurs are busy running their businesses; looking for money can be incredibly time consuming and frustrating. But if they know who to call and how to make a convincing pitch, they can reduce the amount of time it takes to raise the money they need.

Written by Joseph R. Bell, a former angel investor and COO of the Colorado-based CTEK angel group, Finding an Angel Investor In A Day: Get it done right, get it done fast! shows businesspeople what they need to know to find an angel investor and get their company funded—from how to find angel investors in their own community and prepare a presentation that will get investors attention to getting a good valuation and effective term sheet negotiating strategies.

** Lower the perceived risk
To an investor, there’s a direct correlation between risk and reward: The higher the risk, the higher the reward has to be. Anything a business person can do before seeking funding that lowers the perceived risk—such as having key customers lined up, a prototype tested, or key employees in place—increases the value the company will receive.

** Make sure you’re positioned as a high growth company
Many businesses provide a comfortable living, but angel investors are looking for businesses that will grow big and fast enough to provide a high return on investment (ROI). Return on investment is the financial gain angel investors receive for having invested in a company. The ROI that investing in a business offers has to be higher—much higher—than what an investor could obtain by putting their money into other, less risky investments, such as stocks, bonds, or real estate. Angel investors have to achieve a high return on investments in new ventures because investing is risky. Some companies fail altogether and do not bring them any return. So their other investments have to balance those losses.

** Raise enough money (but not too much)
It is unlikely, and possibly unwise, to raise all the money needed to start a company at one time. Most entrepreneurs raise funds at different times in the development of their enterprise. One reason to raise money at different stages in a company’s development is that money raised when the company is more mature costs less in terms of how much equity, or portion of ownership, is given up in return. There’s a reason for this. With each stage of development—perfecting the product, securing paying customers, developing a significant portion of market share—the risk for the investor is reduced.

** The highest valuation isn’t always the best
Entrepreneurs want their companies to be valued as high as possible, but a very high valuation of a company is not necessarily a good thing. An initial high valuation can set up problems for later rounds of financing. Sophisticated investors, especially venture capitalists, may steer clear of companies with unrealistically high valuations. A high valuation may also force a “down round” in the future. This where the company is given a new, lower valuation in future round of investing because it is seen to have been overvalued in an earlier round.

Finding an Angel Investor In A Day: Get it done right, get it done fast! is packed with essential information, strategies for advice and expert advice. Dozens of worksheets, sample scripts and questions help entrepreneurs navigate the often complicated process of getting their companies funded. The book also covers:

• 12 key presentation slides to convince investors
• How to locate and get an appointment with angel investors
• Preparing a business for the angel investment process
• Complete sample term sheet included and explained
• Equity ownership calculation worksheets
• Questions investors will ask and red flags for investors
• “Staging” investment “rounds” to maximize equity ownership
• Negotiating strategies to get the best deal
• Comprehensive angel investor resources listings
• Glossary of key financing terms

About Joseph R. Bell:
Joseph R. Bell managed the Rutt Bridges Venture Capital Fund and was COO for the Colorado-based CTEK Angels, which provides entrepreneurs with expertise, resources, and capital sources. He is an Associate Professor of Entrepreneurship at the University of Arkansas at Little Rock. He received his MBA in Finance from Michigan State University and a Law degree from Thomas M. Cooley Law School.

About The Planning Shop:
The Planning Shop, located in Palo Alto, California, specializes in business resources for entrepreneurs. Their books and products are based on years of real-world experience and sharing secrets and strategies from entrepreneurs, CEOs, investors, and lenders. The Planning Shop’s books have been used to launch, run, and grow successful businesses in every industry.

Book Details
Finding an Angel Investor In A Day: Get it done right, get it done fast!
Publisher: The Planning Shop
Author: The Planning Shop with Joseph R. Bell
180 pages
$19.95
Copyright, 2007
ISBN-10: 0-9740801-8-7
ISBN-13: 978-0-9740801-8-5

Screen shots available at the following link: www.planningshop.com/about/media_angel.asp

EDITORS: If you would like more information about this topic or to schedule an interview with Joseph R. Bell, please contact Rosa Whitten at: 650-289-9120 or rosa@planningshop.com.