Data has shown that 10 percent of angel investments generate 90 percent of the returns; not all angel investors are going to be lucky enough to have one of those home-run investments in their portfolio. While angel investing as an asset class generates good returns for investors, only a small number of angel investors will make exceptionally great

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However, investing in a higher number of billion-dollar companies does not necessarily mean a greater success level for a VC firm, as measured by return of the fund. Some firms may have larger fund sizes and hence invest in more companies. Some don’t lead deals and are not ownership sensitive. Analyzing what percentage of a firm’s bets that became

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This means we need that last company to return 3x the value of our entire initial investment into all 10 companies. But since that company itself only received one tenth of our original investment, simple math tells us that in order to hit our target 25 percent IRR, that one, single company needs to return 30x ROI! And because we won't know in adva

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