For an angel investor to beat the odds, they need to invest in a portfolio.
Research from 2012 showed that angel investors needed to invest in a minimum of four to six companies; any fewer and they were more likely to lose money.
Once investors had a portfolio of at least four investments, their median return exceeded 1x, but ideally they had a dozen investments in their portfolio. And each of their investments should have had the potential to become a home run.
A study done by the data science team at AngelList suggests that angel investors who made investments in more companies generated higher returns. (According to one survey, the average angel investor has fourteen companies in their portfolio.)
The median investment amount by an angel investor in the United States was $ 25,000
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