Angels better than VCs?
As we head for yet another investment winter, angel investment is going to become a more important driver for many new start-ups. While the vast majority of current research is dedicated to VC investment, the fact is that over the last ten years, formal venture capitalists invested less than two percent of total venture capital dollars in seed-stage companies.
What are the typical returns for angel investors? What is the normal exit period? What percentages of angel deals returned back the original capital? What percentage of angel-led deals took on a VC investor and did they provide better returns? What percentage of angel investments were pre-revenue investments? What are the pre-dominant industry sectors for angel investors?
This and other well researched data were carried out in a recent comprehensive study in the US and provides some very useful insights. It will act as a benchmark for individual angels, HNWIs and angel networks as well as early stage VCs. We highlight some of the most important findings.
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