The skewed returns for angel investments report by Rob Wiltbank in 2007 for the US and in 2009 for the UK describe a clear strategy for angel investors: [1] diversity* – invest in a large number of deals (ideally 25 or more) and [2] scalability – invest only in deals that can scale valuation rapidly [...]
Do Angels See a Return on Invested Time? As has been reported in an earlier post, angels with a diversified portfolio of invested companies should expect to earn about 25% IRR over a decade or so of angel investing. A frequent question from new investors is: “but what is your return on time invested in [...]
Angel Investor Portfolio Strategy In an earlier post, I addressed the issue Is a Respectable ROI an Achievable Metric for Angels? and concluded that, under certain conditions, reasonable returns could be achieved from an angel’s portfolio. My conclusions were based on a study by Professor Rob Wiltbank at Willamette University (near Portland, OR) Returns to [...]
Just What Are Angel-only Deals? In my last post, I described the trend among angel groups in the US to fund more angel-only deals, primarily because of the changing world of US venture capital. I did so without really describing the characteristics of angel-only deals. Perhaps I should start by describing angel deals. Oh…I did [...]
US Trends in Startup Funding – Angel-only Deals Because the US is a large country with huge demographic variety, venture capital has thrived in a few regions and is virtually unavailable elsewhere. Venture capitalists prefer not to travel to portfolio companies, investing instead close to home. Consequently, while angel groups in a few regions do [...]
John Tozzi has a post on Business Week’s Small Biz blog regarding the trend of an increase in angel funds. I think one reason for this trend is a result of some Angel Investors who are excited by the idea of investing in startups, but are not able to dedicate the time to be an [...]
