Most great angels will invest in at least 10 deals per year, though many aim for closer to 20.
That’s because angel investing is a numbers game; invest in just a few deals, and you may never see a return. On the other hand, if you spread out your annual investing budget across 10 or more deals, you’re very likely to come out in the positives.
The average angel investor can expect to net between 20 and 30 percent annually on their portfolio, assuming they keep it pretty well-stocked with deals. In my opinion, though, 20 to 30 percent isn’t quite good enough.
That’s why I developed the 1,000X Formula. It’s a simple equation I use to determine whether a startup has the potential to 1,000X my money.
Still, you’ll need to invest in several deals for the formula to work – and that’s an awful lot of equity to keep track of. When you hold a stake in 20+ companies – and all of them are constantly on the move – how can you keep tabs on your overall profits?
Check out the video above to learn how I do it.
Until next time,