The average return for an angel investor can vary widely depending on several factors, including the industry, stage, and location of the startup, as well as the experience and investment strategy of the angel investor.
According to a report by the Angel Capital Association, the median return on investment (ROI) for angel investors in the United States is about 2.5 times their initial investment over a period of four years. However, the ROI can range from negative returns to much higher returns, with some investors seeing returns of 10 times or more on their investments.
It’s important to note that angel investing is a high-risk, high-reward investment strategy. Many startups fail, and angel investors may lose some or all of their investment in these companies. However, successful investments in startups that achieve high growth and profitability can generate significant returns for angel investors.
Overall, the potential return on investment for angel investors can be significant, but it’s important to carefully evaluate each investment opportunity and diversify investments across multiple startups to mitigate risk.