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What Angel Investing & Florida Condos Have in Common

Both Sides of the Table

The dinner parties now are filled with self-righteous angel investors bragging about how many deals they are in on. They have marked-up paper gains propped up by an over excited venture capital market that has validated their investments. Logic tells me the following: It is hard to make money angel investing.

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Disappointed Billions are the Best Thing Ever

This is going to be BIG.

Unlike venture capital funds, they don't make money directly off the multiples of their return. They did quite well on their angel investment in Square. Rowe Price and Fidelity funds who bid the company up to ridiculous valuations in their pre-IPO rounds. Congrats on your huge disappointment.

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Trends in Seed Stage Funding for Entrepreneurs

Gust

Here are the trends in venture capital financings from 2006 through 2010 – the number of seed stage deals funded and total investment by region in millions of dollars. . Then, I looked at angel investment in the US over the past five years, as reported by the Center for Venture Research , in billions of dollars.

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Angel Returns Beat All Asset Classes But Pose Greater Risk

Angel Capital Association

Both angel group portfolios offer statistically significant sample sizes, and three previous large studies by Professor Rob Wiltbank also showed IRR’s in a similar range: 27% ( 2007 study ), 22% ( 2009 study ) and 22% ( 2016 study ). But how does this compare to other asset classes for comparable periods of time?

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Don't blame the game, blame the playas

This is going to be BIG.

Apparently, venture capital is a cruddy asset class where you can't get returns over the long term. That might make sense, if venture capital was an asset class. Saying that venture capital is an asset class is like saying that Italians are a race. Venture capital works largely the same way.

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Public Policy Quarterly: October 2023

Angel Capital Association

Back to top The History of the ACA's Public Policy Efforts The Angel Capital Association was a nascent organization in 2009-2010 when Congress developed the bipartisan Dodd-Frank Act in response to the fallout of the great recession. ACA is also lobbying in support of the Helping Angels Lead Our Startups (HALOS) Act of 2023.

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Valuations 101: The Dave Berkus Method

Gust

It has been used by angels since, however Dave updated the model for 2009 ACA Leaders Workshop in Richardson, TX. Best practice for angels investing in pre-revenue ventures is to use multiple methods for establishing the pre-money valuation for seed/startup companies. Here is his latest version. Characteristic.