Are any of these making any money? Ron Conway's second angel fund had Google in it and it only returned 1.5x because 80% went bust.
A rough calc of what it would take for one runaway success to payback the total funds invested;
Assuming $20k per deal, $7.4m invested.
Assuming 7% equity per deal, that would need one success to sell for $100m and have no follow on dilution or liquidation preference stacked on top. Given this is seed, assuming 50% dilution that's $200m+ just to return the money back to shareholders. For a big success of 5-10x on the fund, one of these has to hit $1-2 billion. I'm still ignoring liq pref which could be a killer.
A couple of these numbers might be off a bit, but I'm a bit sketchy on the spray and pray of a 369 (or 500) company portfolio unless you are really #1 (YC) and can effectively synthesize "the index".. and then you will only generate beta ("market") returns.
A rough calc of what it would take for one runaway success to payback the total funds invested;
Assuming $20k per deal, $7.4m invested.
Assuming 7% equity per deal, that would need one success to sell for $100m and have no follow on dilution or liquidation preference stacked on top. Given this is seed, assuming 50% dilution that's $200m+ just to return the money back to shareholders. For a big success of 5-10x on the fund, one of these has to hit $1-2 billion. I'm still ignoring liq pref which could be a killer.
A couple of these numbers might be off a bit, but I'm a bit sketchy on the spray and pray of a 369 (or 500) company portfolio unless you are really #1 (YC) and can effectively synthesize "the index".. and then you will only generate beta ("market") returns.