Here’s where accredited investors can find information on best practices and processes for seeking early-stage private equity investments. It’s a great place to start if you’re new to this arena or are looking to enhance your investing skills.

A special thanks to the Ewing Marion Kauffman Foundation and to Nate Silverman of Silverman Consulting for providing content for the documents below.

AIN GuideBook

Alaska InvestNet's GuideBook for Angel Investors and Entrepreneurs
Thank you for taking time to explore our book! As you flip through the pages, you’ll find an explanatory termsheet, presentation tips, sample capitalization tables and a variety of other resources for angel investors and entrepreneurs.

cap tables explained.xls
This file compliments the section on Cap Tables in the GuideBook.

cap tables explained.pdf
If you do not have Microsoft Excel you can still view this file in a PDF format. You will not have the interactive functionality of an Excel Spreadsheet.

Documents

Various Business Structures & Classes of Ownership
Congratulations on thinking about going into business for yourself. That’s the first of many steps. The next step is to visualize what your company will be, what it will do, and how you will benefit. Part of that decision dictates how you will form your company in the eyes of the law and tax authorities.

Debt vs. Equity vs. Grants
The reality is that for start up companies, all money is not the same. How you get, what you can do with, and what it costs to receive money from investors is different than money from debt or grants or even revenue from customers.

Company Valuation
A recent survey of managing partners of venture capital firms asked, “What is the most common mistake entrepreneurs make as they try to raise money?” Part of the most common response was, “Not understanding how to properly determine the value of their company.”

Glossary of Investing Terms
If you've ever wondered what "Convertible Securities" or "Full Ratchet Antidilutions" are then this glossary will be an invaluable asset for you.

Issues in Due Diligence
From market assessment to management team. This document outlines the important issues to consider when doing due diligence.

AIN Due Diligence Checklist
A very helpful worksheet that will help keep your due diligence organized and on point.

AIN Term Sheet Template 1
Here's an example termsheet with accompanying explanations.

AIN Term Sheet Template 2
This example termsheet has notes explaining which terms are investor-favorable and which are company-favorable.

Cap Tables Explained
Capitalization tables (“cap tables”) are used to record and track ownership in a company. If you are a sole proprietor, then it is not necessary to use a cap table – you own 100% of the company. But, if you will raise money from investors and thus share ownership in the company, cap tables are not only helpful, but necessary as you begin discussions with possible investors and, hopefully, pay out dividends from profitable operations and/or divvy up the windfall after you sell the company. If you do take the company public, you also need to be able to show who owns how many shares…so they can sell them on the open exchange (NASDAQ or the NYSE).

Cap Tables Explained: Excel File
This excel file compliments the Cap Table Explanation.

Anchorage Journal of Commerce Wealthbuilders

Understanding Alaskan Angel Investors
In an effort to better understand the characteristics and behaviors of Alaskan angel investors, Alaska InvestNet recently conducted a survey of this small but growing group of folks who take calculated investment risks on up-and-coming ventures. 17 local accredited* investors responded to the survey, each with significant net worth and with interest or experience in early-stage private equity transactions. Below is a summary of some of the key findings...

Starting an Angel Organization
Susan Preston, Entrepreneur-in-Residence with the Kauffman Foundation and founder of Seraph Capital, an all-women's angel investment forum, recently visited Anchorage to discuss national trends in angel investing and to find out if Alaska has what it takes to launch a full-fledged angel network. The workshop, titled The Power of Angel Investing: Starting an Angel Organization, is part of a series of educational seminars put together by the Kauffman Foundation in their effort to enhance entrepreneurship in the U.S. Twentyfive Alaskans attended the event, including angel investors, economic development professionals and a variety of entrepreneurs...

The Power of Angel Investing
The importance in American history and economics of private investments in risky ventures can hardly be overplayed. From the colonial entrepreneurs who crashed ashore what is now New England to the investor-backed expansion of the West, from the rise of the automobile to the internet revolution, risk capital and innovation are two ingredients that in tandem have helped define our country...

Want Investors to Take a Swing? Practice Your Pitch!
So, you’ve got a goose that lays golden eggs, eh? If only you had a couple bucks for chickenfeed, this bird would make us all rich, you say? As an entrepreneur approaching private investors, you’d better come equipped with more than just a fairy tale. Today’s angels have short attentions, sharp pencils and rarely give a second chance. A key to being successful in raising early-stage financing for your start-up lies in knowing your market. Not just your product market or your service market, but the market of investors who might give you a chance to pitch your company to them...

more articles...

Links

Angel Capital Association
The Angel Capital Association is North America's professional alliance of angel groups. This fast-growing association brings together the 200 angel organizations in the United States and Canada to share best practices, network, and help develop data about the field of angel investing.

US Securities and Exchange Commission
The primary mission of the U.S. Securities and Exchange Commission (SEC) is to protect investors and maintain the integrity of the securities markets. The SEC requires public companies to disclose meaningful financial and other information to the public, which provides a common pool of knowledge for all investors to use to judge for themselves if a company's securities are a good investment. The SEC also oversees other key participants in the securities world, including stock exchanges, broker-dealers, investment advisors, mutual funds, and public utility holding companies.

Investor's Guide to the SEC
This publication describes the information you should review before you invest, provides tips on how to find information about companies and lists several 'red flags' to avoid.