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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.

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Get your view-only copy here and feel free to make a copy to edit with any investments you make: https://lnkd.in/eRuWh8Qq

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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.

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If you liked this or found it valuable, please comment/share and consider joining The Council Angels community:

https://lnkd.in/emjZUMiD

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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