Analyze potential returns on startup equity investments
Angel investing is speculative. Most startups fail. Expected value calculations use simplified models. Not investment advice.
Tools that pair well with this calculator — selected by our team.
| Tool | Best For | Network |
|---|---|---|
| Republic | Angel investing in startups | Direct |
| SeedInvest | Startup investing platform | Direct |
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An angel investor uses personal capital to invest in early-stage startups, typically providing $10K-$500K. They often offer mentorship and connections in addition to capital.
Angels typically target 10-20x return on successful investments, knowing most startups will fail. This compensates for the high risk of early-stage investing.
Simple Agreement for Future Equity — a financial instrument where investors give money to a startup in exchange for the right to receive equity later at a discount to the next priced round.
Through a liquidity event — acquisition, IPO, or secondary sale. Unlike debt, angels have no guaranteed return. Their equity converts to cash only when the company exits.