There's a secret world of investing controlled by angel investors and venture capital.

One investment has been the secret of the wealthy for more than 80 years. It accounts for nearly a fifth of the wealth for million-dollar investors and nearly four times the return compared to stocks.

Investing in startups has led to an average 27 percent return for wealthy investors, nearly four times the average 7.4 percent annual return on stocks over the decade to 2013.

When asked where they invested their money, investors with an average of $7.6 million told BNP Wealth Management those alternative investments like venture capital and startups were their second-largest investment after their own business.

Consider Peter Thiel's 2004 investment of $500,000 in Facebook as its first outside investor. By the time the rest of us could invest in Facebook, Thiel had already made $1.7 billion for a 340,000 percent return on his investment.

Welcome to the world of startup investing and equity crowdfunding.

I've spent nearly a decade analyzing startup investments for venture capital firms and angel investors. I set up the research department for one venture capital investor and managed a team of six analysts, poring over pitch material and market research to find the best startups in which to invest.

Investing in startups is like nothing you've ever seen in the stock market. These companies aren't covered by analysts, and you won't find a P/E value on Yahoo Finance. You won't hear other venture capital investors or angel investors sharing their process or picks on TV either.

They don't want you stealing those 27 percent annual returns.

That's what this book is all about, using a process I have developed over years as a venture capital analyst to avoid the risks in startup investing and find the best deals.

It's not an easy process. It involves research and strategic planning on your part. I'm ready to share it with you if you're ready for the challenge.