Million dollar myth: Sydney Angels co-founder Hamish Hawthorn says as little as $15,000 can get you access to an angel investment opportunity, and it’s not only grey-haired men that participate.
“MYTH: ANGEL INVESTMENT DOESN’T DELIVER RETURNS
Angel business investments are certainly a high-risk area. Half of all startups, even after good screening, due diligence and post-business investments help, will fail to return what was invested. But these losses can be more than compensated by the few that return 10-30x the initial investment. The key to making returns is to have a portfolio of enough investments to contain some of these big winners. Those who use a disciplined investment process to build portfolio can see extraordinary returns from the startup sector over time.
A large-scale study undertaken by the Kauffman Foundation and NESTA found that angel investors in the US and UK generated an average return of 2.5 times the amount invested in a mean time of four years from investment to exit, equating to a very healthy 26% internal rate of return. “
Excerpt taken from article: “We’re not all retired blokes, and 4 other angel investor myths busted” by Sydney Angels co-founder Hamish Hawthorn http://www.brw.com.au/p/entrepreneurs/hamish_busted_sydney_angels_retired_O6yEoclYtKcIHAJ0S1n56H