Angel investors represent a growing portion of the available investment for seed and startup companies. With Anges Québec (“AQ”), entrepreneurs are able to present their projects or ideas simultaneously to a large group of qualified angel investors. Any investment is based on a structured evaluation process which allows AQ and its members to efficiently and rapidly select the most opportune investment projects.
Angels’ expectations
Individually, angel investors invest, on average, between $25,000 and $100,000 per project. Depending on their level of syndication, angel investors, as a group, will invest between $250,000 and $1,000,000 per project.
On average, each angel investor will enter into 1 to 4 projects per year and will have a portfolio of between 3 and 20 companies. Angels often have 3 active investments at any one time and the rest of their investments are passive in nature.
Generally, angels accept a 5 to 7 year investment horizon before an exit. It should be noted that because of the risks associated with such early stage investments and the value they add to their investments, angels typically are looking for a significant return on their investment.
