Mark MacLeod of StartupCFO draws attention to a valuable guest column that Simeon Simeonov wrote for PEHub, detailing Angel investing statistics from that familiar centre of excellent numbers, the Kauffman Foundation. Their survey of Angel investors in groups, titled the Angel Investor Performance Project, yielded the following key findings (some our faithful readers will have seen before):
- 75% of exits happened between 2001 and 2006. There is some reason to believe that the data may have a slight bias towards negative returns as 50% of investments happened between 1995 and 2000. Angels may have been buying high and selling low.
- 3.2x cash-on-cash return for all investments put together (total dollars out divided by total dollars in). However, returns are extremely sensitive to big hits. A lucky angel put $600K in a software company in three rounds from 1988 to 1994. In 1996 the company went public and the person got a nice 55x return. Removing this one company from the sample drops the aggregate cash-on-cash return for all angels nearly in half to 1.8x.
To read the full, original article click on this link: From StartupCFO.ca: Angel Investing by the Numbers « National Angel Capital Organization
