A large part of what angel investors focus on is generating a substantial angel investors return on investment and rate of return (ROI). While there is no guarantee that the ROI will be a certain amount, with a careful investment strategy there can be very high earning anticipated by using this method. Angel investors also have the opportunity to become part owners in tomorrowâ€™s businesses, which has an influence over the way the economy will grow and prosper for future generations. Instead of sharing earning with others, for example in some venture capitalist situations, angel investors use their own money to invest in start-ups and small businesses that have excellent potential for growth and increased revenues – giving them much more earning potential. This can be somewhat risky, however all of these factors combined makes angel investing a very attractive option for those with extra capital sitting around waiting for a way to multiply.
What are Angel Investor Return on Investment Averages?
On average, angel investor return on investments can range anywhere from 20-40% of the initial capital investment. These earnings can depend on how much and where the monies are used, in addition to how long it takes for a start up to reach critical stages of growth. In the USA alone, businesses in top growth sectors like software, healthcare and medical devices raise in the hundreds of thousands of dollars in capital just from angel investors, and the ROI is in the millions of dollars after only three to five years on average. It is safe to say that angel investment is one of the most rapid ways of raising capital and funding the future success of business in many regions, along with the highest rate of return and risk. Those who wish to engage in angel investing are wise to start small and assume partial ownership in the companies in which funds are invested for the maximum benefits in return on investment.
About the Rate of Return for Angel Investors
The rate of return for angel investors can be substantial, between 20 to 30 times the rates of traditional investment strategies. This makes it an appealing way for independently wealthy individuals and those who are on the verge of retiring to invest in their financial futures. The ROI is not guaranteed, but trends have shown that angel investors fair well even in troubling economic times because they are supporting not only themselves, but also the local economy. Businesses who actively seek out angel investing are among the fastest growing companies and they are worth investing in. Angel investors who are smart about who and what they invest in have the best chance of earning a high rate of return which can double or triple their initial capital funding and lead to long term earnings over a short or long term period. Itâ€™s not surprising that angel investment is one of the most popular means for increasing wealth and contributing to the community.
More Information on Angel Investor ROI
Looking for more information on angel investor rate of returns? Learn more through FindVenture.com.