Exit Strategies for Angel Investors – Part 2
Highlights of Exit Strategies for Angel Investors – Part 2:
- Venture Capital in North America is in crisis – big funds aren’t working anymore.
- Traditional Venture Capital funds have grown too large for the current exit environment.
- We now have a much better idea of the differences between traditional Venture Capitalists and Angel Investors.
- The most important differences relate to the exit – the minimum investment size, minimum return required and acceptable time to exit.
- As traditional VCs have put more and more into each company, the time from investment to exit has increased dramatically.
- What that means for Angels is that if a VC follows on, it will add about ten years to the exit.
- Angel investors are happy to have 3 to 4x returns in 3 to 5 years.
Many of the lessons I’ve learned are described in my new book on exit strategies for entrepreneurs and angel investors – www.Early-Exits.com.