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50% IRR with spray-and-pray angel investing

14 pointsby predoggerabout 2 years ago

6 comments

jacquesmabout 2 years ago
That doesn&#x27;t mean that if <i>you</i> invest in this manner that you will see the same returns, this may well be a case of survivorship bias or, alternatively other circumstances that make this unique. Angel investing is a lot of work if you do it for the money and just throwing your money at random projects can work if you&#x27;re lucky but most likely you will not be.
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SnoJohnabout 2 years ago
This is fun to listen to for all its counterintuitive observations like not wanting to meet the founders.<p>But like a lot of angels, it just ends up being a fish story without any real hard numbers or company names.<p>I don&#x27;t doubt what he is saying, it&#x27;s just hard to learn anything from angels when you have no real data.
robocatabout 2 years ago
He makes some really interesting points.<p>Kirk suggests to invest 20% of wealth in very high risk. Question: anyone know why Kirk doesn&#x27;t even mention owning a home as part of the remaining 80%? I&#x27;m guessing it has something to do with living in SV?<p>Kirk followed Naval Ravikant in every deal (syndicated) from near when Angellist started, and Kirk thinks that might explain a lot of the 50% IRR.
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chappy2727about 2 years ago
go team - been following along with Wannabe Angels since the beginning. All of the theory behind angel investing is mirrored in pro poker experience. It&#x27;s the same balance of risk analysis, math &amp; gamble.<p>You can beat the game in the long run by playing smart (following a lead like Naval) -&gt; but the short term wins and loses are defined much on &#x27;luck&#x27;. :)
predoggerabout 2 years ago
Interview with Kirk Ouimet Founder of Scan which was acquired by Snap talks about his spray-and-pray angel investing style leading to 50% IRR.
LeeroyChangkinsabout 2 years ago
Could you even imagine doing that many deals?
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