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After calculating winners and losers over time, angels who invest through angel groups will typically see a portfolio return in the 23-37% range, or about 2.5X. Getting 4.8X your money back sounds good, until you think about what you could have done with that money if you could have reinvested it after five years.
They can be repaid on a straight schedule (for investors who are providing loans instead of buying equity in your company), they can be paid back based upon their percentage of ownership, or they can be paid back at a preferred rate of return.
Founders: 20 to 30 percent. Angel investors: 20 to 30 percent. Option pool: 20 percent. Venture capitalists: 30 to 40 percent.
In terms of how much money angel investors can bring to the table, it's not unusual for a typical investment to range from $25,000 to $100,000. In some instances, angel investors may be willing to part with even larger sums to assist a startup. Pros: Angel funding is not a loan.
Angel investors typically want from 20 to 25 percent return on the money they invest in your company. Venture capitalists may take even more; if the product is still in development, for example, an investor may want 40 percent of the business to compensate for the high risk it is taking.
The typical angel investment is about $10,000. The average angel investment is $77,000. The average amount of money received by each company receiving angel investment is close to $372,000.The amount of money received by companies from accredited angel groups tends to be a bit higher, but not that much larger.
The typical angel investment is $25,000 to $100,000 a company, but can go higher.