 by Shriya Nevatia
I built this Angel Investment Value Calculator to help you understand the answer: - If there are between 0-5 additional rounds of dilution after your investment - If the company exits for $100M-$10B I showed the different scenarios of dilution with an estimated 20% dilution per follow-on round And showed you the final expected value of your initial investment. I even compared it to investing in the S&P 500 for 10 years at a 7% average annual return, as this was one of my big questions when I started out. ===== Get your view-only copy here and feel free to make a copy to edit with any investments you make: https://lnkd.in/eRuWh8Qq ===== Be sure to update the "Post-Money valuation" & "Amount you invest today" to match each investment you're considering or have made. Recently updated to include scenarios for investing via a Syndicate & investing a Venture Fund's capital (instead of your own) as a Scout. Next up will be a portfolio calculator where you can track a portfolio of investments in a template to figure out portfolio construction. ===== If you liked this or found it valuable, please comment/share and consider joining The Council Angels community: https://lnkd.in/emjZUMiD ===== P.S. Because it needs to be said -- the most likely outcome is a $0 exit, and $0 return. The purpose of this spreadsheet is to show than *even very small checks* can be high-ROI in the best possible case!! Capped downside, uncapped upside. #venturecapital #angelinvesting #startups #founders #fundraising
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