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Invested Investor Book Provides an Excellent Insight Into the Way Angel Investors Think

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Invested Investor Book Provides an Excellent Insight Into the Way Angel Investors Think THE INVESTED INVESTOR THE NEW RULES FOR START-UPS, SCALE-UPS AND ANGEL INVESTING Invested Investor Text.indd 1 26/06/2019 07:16 Published by Invested Investor Limited © Invested Investor Limited and Peter Cowley 2018 Edition one, 2018 This is edition two, 2019 www.investedinvestor.com Peter Cowley has asserted his right under the Copyright, Designs and Patents Act, 1988, to be identified as the author of this work All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form, or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission, in writing, from the publisher. Text and cover designed by Paul Parrett Book Production, www.pbbp.co.uk Illustrations by Neil Kerber Project management: Sally Simmons ([email protected]) and Rosalind Horton ([email protected]) ISBN 978-1-9164079-2-3 (hard cover) 978-1-9164079-0-9 (paperback) 978-1-9164079-1-6 (ebook) Invested Investor Text.indd 2 26/06/2019 07:16 Citations This remarkable book traces Peter Cowley’s personal journey from being an entrepreneur and a business angel to an Invested Investor. It also interweaves decades of his own “lessons learned” with those of other entrepreneurs and angel investors, so that it simultaneously constitutes a major piece of research, all the while having the slight flavour of being a mystery story. You cannot wait until you get to the end to find out how it all worked out! The readers, be they angel investors, entrepreneurs, or even policy makers, researchers, and large corporations seeking to find the secrets of innovation and scaling up, will be well rewarded with this insightful, eminently useful and readable book. It is well worth the time invested to read and to keep on coming back to as a reference over and over again. Candace Johnson – Serial Entrepreneur and Angel Investor, SES Astra, SES Global, Loral Teleport Europe, Europe Online, EBAN President Emeritus, OWNSAT-Kacific Peter’s candid and transparent approach is a what the start-up world needs. This book helps both investors and entrepreneurs understand the mind of an invested investor. Jon Bradford – Founding Partner, Motive Partners and the Godfather of European Accelerators Peter is a unique angel investor in that he is absolutely tireless at passing on his hard-won knowledge of starting deep tech businesses and making them successful. He works extremely hard with aspiring entrepreneurs and helps them to beat the odds every step of the way through a combination of great knowledge and forthright coaching. When I first heard him use the expression ‘The Invested Investor’, I immediately understood the concept and have been using the expression myself and extolling its virtues. I am Invested Investor Text.indd 3 26/06/2019 07:16 IV THE INVESTED INVESTOR delighted that Peter is formalising this approach and turning it into a model for business angels and investors. Successful start-up investment is so much more than the financial transaction and this method will help to keep Angel investing rich, enjoyable and successful. Robert Marshall – CEO, Marshall Group I have made my way through the chapters with great interest and finding the book both informative and a real pleasure to read. No mean feat! I was particularly struck by your comments at the top of page 66! Catherine Lewis La Torre – CEO, British Business Investments & British Patient Capital Combining humor and deep insights, Peter Cowley delves into the opportunities and obstacles of being a successful angel investor. Whether, you are a new angel, a seasoned angel, or just someone who wants to support innovative ideas, I highly recommend this book. It will likely save you a lot of mistakes and may even help you find some winners. Linda Smith – Chair Emeritus, Angel Capital Association Peter’s honest approach gives entrepreneurs the chance to understand the mindset of the investor & that not all investors are equal. Hanadi Jabado – Director of Enterprise, Cambridge Judge Business School What I liked about this book was how candid the author was on investing returns – in that one should expect lots of failures along with the few successes – if one has made enough investments. He also has a good set of case studies of real-life companies with surprising amount of inside detail which is normally hidden. This book is great for first time and seasoned Invested Investor Text.indd 4 26/06/2019 07:16 CITATIONS V angel investors. Although it has a UK emphasis, the lessons are good for investors in any country. Ronjon Nag – Exited Entrepreneur, Invested Investor and Stanford Distinguished Careers Institute Interdisciplinary Fellow Advice may not always go to plan, but the advice Peter gives in this book is hugely useful to entrepreneurs looking for angel investment. His frank personality has produced a very readable and interesting insight on angel investing. Shirin Dehghan – Founder & CEO, Arieso and Senior Partner, Frog Capital. I was preparing some classes for Cambridge Judge Business School for their Masters in Entrepreneurship and not surprisingly one of the reading materials will be the book by Peter Cowley. Great insight to Business Angel thoughts. Goncalo de Vasconcelos – Founder & CEO, SyndicateRoom Straight-forward, wise and practical advice from the Archangel of Angels. Well worth reading for entrepreneurs, angels and advisors. Martin Frost – Founder & CEO, CMR Surgical It reads well and has good cartoons. A useful reminder to those of us in the industry of what we should be doing, a guide for new angels; but in my opinion particularly good for entrepreneurs to help them understand how private investors think. Struan McDougall – Founder & Chairman, Cambridge Capital Group Invested Investor Text.indd 5 26/06/2019 07:16 VI THE INVESTED INVESTOR The candid, honest, war story approach resonates with the way I like to help start-ups. Ian Tracey – Head of Access to Funding & Finance at The Knowledge Transfer Network (KTN) The Invested Investor book provides an excellent insight into the way angel investors think. Mark Littlewood – CEO, Business of Software Conference Invested Investor Text.indd 6 26/06/2019 07:16 CITATIONS VII This book is dedicated to two people who died too young: my close friend and angel mentor, Nat Billington and my son, Ian/Nam, who wrote the verse below to help me overcome my fear of public speaking. He succeeded, giving me the confidence to travel the world sharing my experiences of angel investing with thousands of people. Nervousness to a crowd Feel that heart start to pound, before you even stand Somewhere in your body, that sped-up beat is being highlighted A look around in front of you confirms, that yes, you are standing with hundreds of eyes on you You find it hard to move, as your now rigid body tightens The words come thin and fast, though they can’t find that dancing enthusiasm now Relax Breathe in… breathe out… aaaarrr Free the tension that holds you, let it go These beings that are watching and listening, make no judgements They and you are we We have all come to be in joy To share and experience each other’s creativity So relax my friend, hang loose For that nervousness has been replaced, that fear has been replaced With confidence… With love Relax and embrace this moment to share… Invested Investor Text.indd 7 26/06/2019 07:16 VIII THE INVESTED INVESTOR A note to investors and entrepreneurs around the world This book is packed with universal principles for investors and entrepreneurs wherever they are – but it won’t take you long to work out that I’m British. Any references to tax and other legal requirements relating to investing are the situation in the UK, at the time of writing. If you are investing outside the UK, naturally you’ll check what applies in your judiciary, won’t you? Disclaimer Angel investing carries very high risks and should not be under- taken lightly. I am sharing multiple experiences and lessons I have learned from several decades of building companies and investing in start-ups, but please be aware that you must make your own decisions about whether angel investing is right for you and, if so, how you will go about it. Do not invest money that you cannot afford to lose in start-up businesses. Invested Investor Text.indd 8 26/06/2019 07:16 Acknowledgements Thanks first, to my kids (Matt, Ian and Alan) who, being millenni- als taught me so much (how else does a baby boomer learn to avoid FOMO?), especially Alan, who as my cofounder of the Invested Investor (my 12th start-up, his first) copes with my crazy ideas and tight deadlines. To my wife, Alison, who allows me to be over-busy, yet find time to have holidays and a social life. Next to Katy Tuncer, who, four years ago, became a mentee, my business life coach and a friend, which started with asking for my help with her start-up (now classed as an elegant failure) and very soon telling me that I needed to learn to say ‘no’, with which I still struggle. And Kate Kirk (who will always be able to wordsmith and play better real tennis than me), Jonno Brech (our marketing guru who challenges any assumption) and Brian Harris (who chose the name and helped define the tone). To my focus groups who gave me a regular and well-deserved battering. Entrepreneurs: David Buxton, James Hyde and James Strachan, William Makant and Yusuf Muhammad, Alex Schey and Toby Schulz, Raph Scheps and Gideon Farrell. Angels: Simon Thorpe, Rajat Malhotra and Tim Parsonson.
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