Jun
3rd
Thu
3rd
The Math Of Angel Investing
Angel investing works with a lot of investments and very few home runs. Home run as in you invest €50k and take out €5 million …
Brad Feld shares a few tips on how to be successful at angel investing. My favorite is the following:
3. Understand the difference between 0x and 100x: I’ve had two of my angel investments return over 100x each. Since I had a strategy of investing the same amount in each company, all I needed was one 100x to allow me to have 99 companies completely flame out and return 0 and I’d still break even. With two investments at over 100x, I now have a built in gain of significantly over 3x across all of my investments since I’m made about 75 of them and I’m now deliciously “playing with house money” on all of the rest.
