SaaStr · 2015-08-04
· 3956d
Professional Angel Investment Returns: Why 100x Returns Define 'Great' Deals
Jason Lemkin explains that for professional angel investors, a 'great' investment return is defined as at least seven figures (100x returns). With a typical $50k investment across a portfolio of 20 deals, a single 100x return ($5m exit) is needed to meaningfully impact overall portfolio performance and justify the risk.
Metrics in this report
Example Exit Valuation
150$m
exit price before dilution
100x return scenario
Example Pre-Money Valuation
1.5$m
entry valuation
seed-stage investment example
Exceptional Return Multiple
100x
target multiple
seed-stage investments
Minimum 'Great' Investment Return
7 figures$
minimum threshold
professional angel investors
Portfolio Deal Count
20deals
diversification strategy
professional angel portfolio
Portfolio-Returning Investment Multiple
20x
return multiple
single deal in 20-deal portfolio
Strong Portfolio Return Multiple
5x
overall portfolio multiple
from single 100x investment in diversified portfolio
Typical Angel Ticket Size
50$k
per-deal investment
professional angel portfolio construction