Tracking #Angel #Investor Performance

Most angel investors take pride in their #portfolio , and are happy to brag about
all the #startups which they've backed which have gone on to make tons of money.
However, the reality is that very few who manage to do this because the truth is
that most start-ups fail .
This is why we need to flip the question and ask them - "How many failed start-ups
did you turn down? How many of these failures were you smart enough not to back,
because you realized there was a flaw in their business model ? "
This is a valuable metric , because it shows that the investor is frugal, and is
not burning cash unnecessarily ! For a long term angel, the ability to turn down
startups which will flop is as important as his ability to spot a successful
startup .
It's also a good idea for angels to track their anti-portfolio - all the companies
which they turned down, but which turned out to be wildly successful. It's only by
critically analysing all their hits and misses will angels be able to improve their
performance going forward. Investors demand that their #entrepreneurs should crunch
their numbers on a regular basis, and it's just as important for them to do this
for themselves as well !