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1 | Angel Investment Value Calculator | by Shriya Nevatia | https://www.linkedin.com/in/shriyanevatia/ | https://twitter.com/shriyanevatia | sneva831@gmail.com | PSA please be careful and responsible with your $, angel investing is one of the highest-risk asset classes around. The most likely case is that your investment goes to 0. | Did I make a mistake? Have a suggestion? Tweet at or email me and I'm happy to update this! | |||||||||||||||||||||
2 | $100M Exit | $1B Exit | $10B Exit | FOR COMPARISON | ||||||||||||||||||||||||
3 | Post-Money Valuation today | Amount you invest today | Ownership today | How many rounds of dilution after you got in? | Percentage Diluted Per-Round | Ownership after funding round 2 | Ownership after funding round 3 | Ownership after funding round 4 | Ownership after funding round 5 | Ownership after funding round 6 | Final Ownership | Exit Value | Final Value | Multiple on original investment | Exit Value | Final Value if $1B Exit | Multiple on original investment | Exit Value | Final Value if $10B Exit | Multiple on original investment | Investing in the S&P 500 for 10 years at an average growth rate of 7% would yield: | |||||||
4 | Company Name | $10,000,000.00 | $1,000.00 | 0.01000% | 0 | 20% | N/A | N/A | N/A | N/A | N/A | 0.01000% | $100,000,000.00 | $10,000.00 | 10.00 | $1,000,000,000.00 | $100,000.00 | 100.00 | $10,000,000,000.00 | $1,000,000.00 | 1,000.00 | Amt. invested | 10-yr value | Multiple | ||||
5 | There's a fair amount of legal paperwork that the founder has to do if you are *directly* on the cap table, both at time of investment and later on in future rounds. So most likely you will not be able to get your name on the cap table for a check that's <$10K. But you can still get the full allocation -- a smart way for founders to reduce their future work but still accept small checks is by creating an AngelList Roll-Up Vehicle. This is like an SPV but the Founder pays the fee instead of the investor. This makes sense for the founder if they are confident that having the RUV will allow them to raise >$8K more than they would have otherwise. Another difference is that in the RUV case, the founder has direct access to & communication with each investor. In an SPV, founders typically only interface with the Syndicate lead, not the other investors from it. A founder may also choose an RUV for pure speed -- they know they want small angel checks & don't want to wait around asking if a Syndicate lead can help them gather those checks, so they'll run the vehicle themselves. | 1 | 20% | 0.00800% | N/A | N/A | N/A | N/A | 0.00800% | $100,000,000.00 | $8,000.00 | 8.00 | $1,000,000,000.00 | $80,000.00 | 80.00 | $10,000,000,000.00 | $800,000.00 | 800.00 | $1,000.00 | $1,967.15 | 1.97 | |||||||
6 | 2 | 20% | 0.00800% | 0.00640% | N/A | N/A | N/A | 0.00640% | $100,000,000.00 | $6,400.00 | 6.40 | $1,000,000,000.00 | $64,000.00 | 64.00 | $10,000,000,000.00 | $640,000.00 | 640.00 | |||||||||||
7 | 3 | 20% | 0.00800% | 0.00640% | 0.00512% | N/A | N/A | 0.00512% | $100,000,000.00 | $5,120.00 | 5.12 | $1,000,000,000.00 | $51,200.00 | 51.20 | $10,000,000,000.00 | $512,000.00 | 512.00 | Angel investments have capped downside (you can only lose up to 1X of your investment) but massively uncapped upside. They are very high-risk and most will go to 0, but the very best can give you FAR better than S&P 500 returns, think 1,000X and beyond (The Apple/Googles of the world). This is an over-simplification -- IPOs are rarer than ever these days, you may get squeezed/diluted a *lot* by funds -- but it's still possible to strike gold. | ||||||||||
8 | 4 | 20% | 0.00800% | 0.00640% | 0.00512% | 0.00410% | N/A | 0.00410% | $100,000,000.00 | $4,096.00 | 4.10 | $1,000,000,000.00 | $40,960.00 | 40.96 | $10,000,000,000.00 | $409,600.00 | 409.60 | |||||||||||
9 | 5 | 20% | 0.00800% | 0.00640% | 0.00512% | 0.00410% | 0.00328% | 0.00328% | $100,000,000.00 | $3,276.80 | 3.28 | $1,000,000,000.00 | $32,768.00 | 32.77 | $10,000,000,000.00 | $327,680.00 | 327.68 | |||||||||||
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