When it comes to returns, many angel investors have experienced 20%-25% pre-tax and 15%-18% net of fees and taxes annually with their startup portfolio. While these returns are not common for all investors, the top 10% certainly experience better returns. The most important differentiation noticed from the Angel investment Halo report is the number of startups an angel invests in.
As the number of investments increases so does the probability of better returns. It is typical for most prolific investors to have better and risk adjusted returns than those who only invest in 2-10 companies, as the graph above shows.
The key issue is to then have a large portfolio, keep investing steadily over time and be patient. To manage a large number of startups in your portfolio (Forbes suggests 30-50 startups), the best angel investors use Zuput to manage their startup portfolio. While many of them previously used Excel spreadsheets and email, the combination of portfolio tracking, automated analytics and compliance reporting are key features they chose Zuput.