Warren Hanselman, TCA's Portfolio Returns
"How are we doing as a group?"
That's what new members want to know when they join the Tech Coast Angels. Warren Hanselman, past Vice Chairman knows exactly how we're doing; he maintains the database which tracks every one of the 157 companies we've funded. As he looks at TCA's returns, he's become an advocate for Basil Peters' Early Exits.
"The next step in the evolution of angel groups is we need to find a way to start syndicating the good deals, the deals where they're truly worthy, they're up running and their next step would normally be to go to a VC, would be to go to our sister organizations around the country and say, 'look if we band together we can put a couple of million dollars together into this thing and keep the VCs out'."
Show #254 (56:36) Listen
Save these dates
8 Dec 2009 the Puerto Rico Venture Forum in San Juan
15-16 April 2010 EBAN's 10th Annual Congress in Istanbul
5-7 May 2010 ACA's Annual Summit in San Francisco
Comments
Great show. Really enjoyed the listen. "Drinking from the fire hose" appears not to be out of the ordinary. It seems like its typical for angels around the country. According to this report funding 3% of deals presented is about average. Other interesting findings from the report:
Av.Investment $458,000
Ave. Jobs created per deal =3.3
Average percentage of equity sold (post money valuation)...
Software: 18%
Full development w/product but no revenue: 23.6%
http://w4.stern.nyu.edu/glucksman/docs/Bhandarkar2009.pdf
Posted by: Carlos Tobin | October 27, 2009 07:59 AM
There's a white paper on the angel investor group returns by Robert Wiltbank and Warren Boeker available from the Kauffman organization web site, see:
http://www.kauffman.org/uploadedFiles/angel_groups_111207.pdf
This was published in late fall 2007 and has some returns from 539 angels and can be combined with the statistics of the TCA described in this podcast along with the Band of Angels returns mentioned in an earlier podcast, to come to some statistical conclusions on angel investing.
I believe the results in Kauffman report above are probably indicative of angel investing in general.
Posted by: Tom | October 28, 2009 08:46 AM