When I started angel investing over twenty years ago, there were angels, venture capital funds, and accelerators. That was about it. Today there are many more investor types in the early stage funding arena.
Here’s my experience with the investor types including how much they invest and what they expect as a return in general:
Crowdfunders — Invest $500 to $2500, expect 2X to 3X their investment in five years
Pre-Revenue VCs — Invest $150K, expect 3X their investment in three to five years
NanoVCs — those who have a $10M fund, Invest $100K on the first check and expect 5X their investment in five years
MicroVCs — those who have a $25M to $50M Invest $150K on the first check, and expect 5X their investment in five years
Traditional VCs — Invest $150K to $500K on the first check and expect 10X their investment in seven to ten years
VCs with Accelerators — Invest $150K to $250K on the first check and expect 3X their investment in five years
Incubators/Accelerators – Invest $25K to $150K, expect 3X their investment in seven years
Angels – Invest $25K to $50K, expect 3X to 5X their investment, in five to seven years
HNI — Invest $100K, expect 10X their investment in five years
Family Office — Invest $250K, expect 5 to 10X their investment in five to ten
Hopefully this helps you identify the right investor for your startup.
Let’s go startup something today!
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NOTE: Investor Connect is a program under the Texas Open Angel Network which is a 501(c3) non-profit dedicated to the education around startup funding. Hall Martin is the principal contact, and may be reached at http://www.investorconnect.org/contact.
Hall T. Martin is the Director of Investor Connect which is 501c3 non-profit dedicated to the education of investors for early stage funding. All opinions expressed by Hall and podcast guests are solely their own opinions and do not reflect the opinion of Investor Connect. This podcast is for informational purposes only and should not be relied upon as a basis for investment decisions.