Archive for the 'Portfolio Strategy' Category

Are Larger Opportunities More Risky Than Smaller Ones?

May 10 2011 No Commented

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?

June 16 2010 No Commented

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

May 12 2010 No Commented

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?

January 12 2010 No Commented

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

January 7 2010 No Commented

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 […]

Passive vs Active Angel Investing

December 28 2009 No Commented

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 […]