Why Do Investors Invest? Exits!
The major goal of angel investing is to achieve a 5X to 10X return on investment, which rewards investors for investing at the most risky and early stage of a business. Angel investing becomes more appealing as an asset class within an investor's wealth portfolio as the exit date approaches. The Bangladeshi pattern has been to leave in 5-7 years.
The time it took to see those returns ranged from three to four years at the low end and seven to nine years at the high end. These investments have return multiples ranging from 2X to 10X, with a typical return of 5.4X.
