What is a good return for an angel investor?
What is a good return for an angel investor? It’s not uncommon for an angel investor to expect a 30% return on their money. Angel investors will have a ROI expectation in mind as part of their exit strategy. This is the point in time when they sell their equity in the company to make up their initial investment and any profits.
Why are angel investors interested in defined exit strategies apex? The goal of an exit is to recoup the initial investment and then some. Most angel investors seek a return of at least 30% on their initial investment. Therefore, having an exit strategy in place when you make your angel investment is crucial to setting you up for that return.
Are angel investors rich? An angel investor is usually a high-net-worth individual who funds startups at the early stages, often with their own money. Angel investing is often the primary source of funding for many startups who find it more appealing than other, more predatory, forms of funding.
What is a fair percentage for an investor? But what is a fair percentage for an investor? When it comes to angel investors, the general rule is to offer approximately 20-25% of your business earnings. If you’re selling the business in its infancy, this is the amount that investors will expect in returns.