With the 23rd BC Angel Forum just around the corner, I thought it would be worthwhile to ask Why an investor might want to should join an Angel forum? – Bob Chaworth-Musters has the answer for me.
An individual Angel investor has little support for due diligence, deal structuring, diversification through co-investing and then post-investment collaboration and problem solving. Experienced angel investors are finding better success through investing only as a part of a syndicate or co-investing group.
- Due Diligence before Investing: Angel investors reported the median length of time was 20 hours. Where investors spent more than 20 hours their return was 5.9x (in 4.1 years). If less than 20 hours, their return was only 1.1x (in 3.4 years).
- Industry Expertise of Investor: Investment return multiples were 2x as high for investments in ventures connected to investors’ industry expertise.
- Interaction with Portfolio Companies: Angels who interacted a couple of times per month experienced an overall multiple of 3.7x in four years versus 1.3x for investors who only participated a couple of times per year.