Startup Funding Espresso -- Portfolio Analysis

Portfolio Analysis

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In running an angel network, it’s important to provide ongoing portfolio analysis for the members.

Investors want to know how their current investments are doing.

They also need to keep track of their current investments by sector and stage to allocate the remaining funds appropriately.

In selecting the type of companies you can take, there are two paths.

There’s the narrow approach in which you invest in a sector you know well.

This gives you the opportunity to add value to the startup since you know that sector.

Or you can take a broad-based approach and invest in deals that spread the investments across a range of sectors.

This gives you maximum exposure to the market. 

A typical angel investor portfolio consists of 10 investments at $25K each.

Angel investments should take no more than 15% of an individual’s portfolio.

So for a $250k investment into startups, the investor should have a net worth of $1.6M or more.

Investors should also reserve an equal portion of their investment for follow-on fundings. So for a $500K investment into startups, the investor should have a net worth of $3M or more.

There are several tools for tracking startup investments and calculating returns, hold times, and more. 

By creating processes and programs, you can better manage the startups, investors, and diligence work that must be done.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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