The reality is that results in angel investing tend to bifurcate:
“Professional” angel investors, who are investing calmly, steadily, relatively-rationally, over a long period of time and with a strong knowledge of both investment math and early stage realities, tend to not only make money, but do quite well: the average return for a comprehensive, well-managed angel portfolio is between 25% and 30% IRR.
On the other hand, the large majority of self-described “angel investors”, both domestically in the US and internationally, would not fall into this category. That is because they are either new to the field, not taking it seriously as a financial business, not in it for the long haul, or not willing to continue investing until they have a fully diversified investment portfolio. For those people, returns tend to be flat to mostly negative.
*original post can be found on Quora @ : http://www.quora.com/David-S-Rose/answers *