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Access toCapital and Markets
returns to angel investorsin groups
Identifying the returns frominvestments made by angelsaffiliated with angel organizations
The ollowing is a synopsis o the largest study on the fnancial returnso angel investors in North America. This study, published in November2007, was unded by the Ewing Marion Kauman Foundation and theAngel Capital Education Foundation and conducted by Robert Wiltbank oWillamette University and Warren Boeker o the University o Washington.Angel investors are high-net-worth individuals who make equity investmentsdirectly into growing companies, usually as the ventures are starting up. Inrecent years, individual angels began orming angel group organizationswith other individual angels to share in due diligence and make larger, moresophisticated investments. Despite the growth o angel group investors, littleresearch has been conducted on their fnancial perormance or demographicprofles.The study analyzed results rom 86 organized angel investor groupsthroughout the United States, involving 538 individual angel group investorswho have experienced more than 1,130 exits in which companies that hadreceived the investments were acquired, went public, or were closed.
Key fnding:
Angel investors participating in organized groups achieve anaverage 27 percent internal rate o return.
•
Exits generated 2.6 times their invested capital in 3.5 years, which is in linewith other types o private equity deals.
•
Seven percent o exits generated returns above 10 times their initialinvestment.
in Groups
Re turns  to
 Ange l In ves tors 
No vem ber  200 7Ro ber t  Wi l t bank,Ph.D.
 Willamette University Wiltbank@willamette.edu
 Warren Boeker,Ph.D.
University of  Washington WBoeker@u.washington.edu
.km.
Download this study:
 www.kauman.org/angelstudy
Search or these related studiesat 
www.kauman.org
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Finding Business Idols: A New Model toAccelerate Start-Ups
•
State Strategies to Promote AngelInvestment or Economic Growth
 
010.020.030.040.050.060.0< 1X1X to 5X5X to 10X10X to 30X> 30X
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    P   e   r   c   e   n   t   o    f    T   o   t   a    l    E   x    i   t   s
Exit Multiples
Overall Multiple: 2.6XAvg. Holding Period: 3.5 years
3 years3.3 years4.6 years4.9 years6 years
 
(over)
Contact:
 Barbara Pruitt816-932-1288bpruitt@kauman.org Kauman Foundation
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