Evidence from Go Beyond Investing AG Shows that Angel Investing Can Deliver Returns

By Bethann Kassman, CEO of Go Beyond Network, an ACA member angel group in Naples, Florida, which is part of an international angel organization Go Beyond Investing, which completed a study of the financial returns and experiences of its member angels in Europe and the United States.  To download the report, go to https://go-beyond.biz/ and click on “download report”.

Go Beyond Investing, the international business angel platform, recently launched The Go Beyond Investor Report: Introducing Angel Investing as an Asset Class for All Investors. The Report, based on six years of data, shows that taking a portfolio approach is critical but not sufficient for delivering success to angels and the entrepreneurs they back. In addition, there must be tools to educate investors both in a learning environment and “on the job”; ability to invest with small tickets; access to deals that have benchmarked valuations and terms; mechanisms to leverage the community intelligence and professional deal leadership certification and compensation.

For years, angel investing has been seen as best suited for very high net worth or sophisticated individuals only. The report also provides evidence that with the above described approach high net worth individuals with smaller amounts of capital to invest as angels can do as well as large angel investors.

Key Facts and Figures

The Go Beyond Investor Report is an analysis of all the investments made by the all the members of the Go Beyond Investor community between 2008 and 2014.

  • Who are the investors: 192 members in 2014 from 20 in 2008, 25 nationalities, 1/3 women
  • How many investments did they make: 10,700 investment decisions which resulted in 1,000 investment tickets in 77 rounds in 36 companies from 11 countries
  • What is the performance of the overall portfolio: 10.6m CHF invested, 12.9m CHF cashed out by March 2015 from 7 of the 36 investments and an estimated total current Net Asset Value (NAV) of 18.5m CHF.
  • What is the individual investor portfolio performance:
    • >80% of members have invested at least once;
    • >80% of investors who have made at least 1 investment have a positive portfolio NAV;
    • > 80% of investors with more than 1 year since their first investment have received some cash back from exits.

How Go Beyond Investors Successfully Build, Manage and Exit a Portfolio of Early-Stage Investments

  • Actively learn angel investing by taking training modules, joining a group of investors led by a coach and using small tickets of 3,000 to 6,000 CHF each.
  • Build a diversified portfolio of 8 to 10 investments over several years.
  • Manage one’s own portfolio with the expert support of Go Beyond Investing and its 23 active deal leaders, especially for follow-on rounds and exit.
  • Look at each individual investment round on its own merit and keep at least 50% of funds for investments which perform well.

How Go Beyond Investing Does It

GBI has taken the best elements of professional angel investing, added the latest on-line service technologies, and created a unique Fintech business model with five components:

  • Syndication vehicles for small investment tickets
  • Professional deal leadership certification and compensation program
  • Cumulative knowledge sharing tools actively educating investors both in a learning environment and “on the job.”
  • One-year novice angel ‘get going’ program.
  • Portfolio strategy tips and tools.

Brigitte Baumann, CEO of GBI and European Business Angel of the Year 2014, comments: “This report provides much needed evidence that angel investing can be an asset class for small and large investors. The Go Beyond Investing approach is THE model to unleash the 10X to 20X growth potential for angel investing in Europe and the US and we will continue to lead the way.”