Update: I did the original work to understand the patterns of successful angel investing for Angel Bootcamp 2010. For Angel Bootcamp 2011 the analysis has been updated substantially. Take a look at Patterns of Successful Angel Investing. Send @simeons a note or Twitter or follow my blog and you will receive a notification when I am ready to share more information.
There are many theories about what makes successful early stage investors or what constitutes a successful seed investment strategy but there is precious little data we can use to test these theories. The Kauffman Foundation sponsored a survey of angel groups which created the best-known public data set on angel investments and returns. For the past few months I have been analyzing the data using traditional statistical techniques as well as Monte Carlo simulations. The findings I have shared are interesting but limited by the amount and quality of available data.
The next step requires detailed investment and return data from angel investors. With the right type of data, we can perform IRR and net-of-market return analysis, which is simply not possible with the Kauffman data. Some angel investors who are curious to know the truth about returns and who want to improve their own investment performance have shared their investment portfolio data with me. If you are an angel investor, I hope you will, too. You can use the following investment portfolio input template in Excel or you can email your data to research at fastignite dot com. I will only make public non-personally-identifiable information and analysis. Everyone who provides me with detailed investment information will receive additional, non-public analysis they can use to better understand their historical investment performance and optimize their investment strategy.