Читать книгу How To Become A Business Angel - Richard Hargreaves - Страница 49

Earlier in the chapter, I drew attention to angel investment returns reported in an academic research study. That data, together with my own simple analysis of the enhancement to investment returns from use of EIS tax reliefs, showed that angel investing can make attractive returns.

However, 56% of investments in that study failed to return the amount invested and most of those lost it all. At the other extreme, around 10% of investments returned more than ten times the amount invested. This means that 80% of the total cash flow from the investments came from less than 10% of them. If the angels in the research sample had known which investments would return more than ten times their money they would not have made the others.

These results starkly illustrate just how hard it is to pick winners and that money needs to be spread across a number of ventures to have a decent chance of enjoying an attractive overall return.

It is clear then that you must spread risk by investing in a portfolio of opportunities if you want to make an attractive overall return with a minimised risk of losing all your money, which is exactly what MPT says you should do.