Angel Investing Statistics - The 411 On Startups (tm)

What to Expect When You’re Expecting Venture Capital Returns

Jul

2015

One of the first things I did when I joined the venture asset class as a lowly institutional LP analyst in 2001 was to build the VC fund cashflow model. Just about every analyst who looks at fund investing has built one. You incorporate expected company returns, mortality rates, and fee structures to try to ...

Studies Find Angels Significantly Impact Success Of Funded Companies – Forbes

Jun

2015

. . . . .Two studies show real evidence that startups backed by strong angels really do better than their counterparts that fail to get such funding. The studies by Harvard Business School professors William Kerr and Josh Lerner and MIT Sloan School of Management professor Antoinette Schoar (along with Stanislav Sokolinsky and Karen Wilson) ...

Crowd Funding Has Not Killed Angel Investing Yet

May

2014

Crowd Funding Has Not Killed Angel Investing Yet Entrepreneurs who require funding for their startup have long counted on self-accredited high net worth individuals (“angels”) to fill their needs, after friends and family, and before they qualify for institutional investments (“VCs”). New crowd funding platforms on the Internet, like and , as well as the ...

Victoria Silchenko: Equity Crowdfunding: Next Generation of Angel Investors Is Not Sorry to Disrupt

May

2013

Nikola Tesla wrote once, “The present is theirs; the future, for which I really worked, is mine.” I can see this being quoted by any supporter of equity based crowdfunding (or crowdinvesting) — an innovative online tool that would give you a legitimate right to own a stake in a company you choose to invest ...

A Simulation of Angel Investing, Part 2

May

2012

This is a follow-up to my post A simulation of angel investing. Several readers commented on Hacker News that my first stab at a simulation was misleading because it showed negative average returns for low deal sizes, when in fact expected returns should be not only positive but constant regardless of deal size. They are ...

A Simulation of Angel Investing

May

2012

In angel investing, it’s the extreme distribution of payoffs that keeps things interesting. If anything, it resembles buying a deep out-of-the-money call option, but with nonlinearity. If you win big you might find yourself in on the ground floor of the next Google or Facebook. That’s incredibly unlikely, but still possible. More likely, you’ll end ...

Kauffman Foundation Bashes VCs For Poor Performance, Urges LPs To Take Charge

May

2012

The Kauffman Foundation, which has ties to the venture industry, has issued a damning study of the business that addresses long-running concerns about poor performance and concludes that the limited partners who invest in funds have no one but themselves to blame. The report, “We Have Met The Enemy…And He Is Us,” draws on lessons ...

The reality of returns on angel investment

May

2012

A majority of all new, angel-backed companies fail completely, so if you invest in only one company, the odds are that you will LOSE ALL YOUR MONEY, not just “not make a profit”. Several studies and mathematical simulations have shown that it takes investing the same amount of money consistently into at least 20-25 companies before your ...

Study Indicates Follow-on Funding Gives Lower Returns for Angel Investors

Apr

2012

In 2007, Professor Rob Wiltbank reported in Returns to Angel Investors in Groups that angel investors made follow-on investment in about 30% of their invested companies. It was surprising for me to learn that follow-on investments correlated with lower returns, that is, angels that made follow-on angel investments saw returns of 1.4X their investment, while ...

‘Angel’ Investors Exist Outside Tech Elite, Too

Feb

2012

Many “angel” investors, who put their own money into small start-ups at a very early stage, previously worked at technology icons that are known for minting millionaires, like Google Inc. and PayPal. But Silicon Valley’s angel-investor scene is far from homogenous, new data show. AngelList, a San Francisco start-up that connects accredited investors with companies ...