Question: How Much Do Angel Investors Charge?

The typical angel investment is $25,000 to $100,000 a company, but can go higher.

What percentage should you give angel investors?

Angel investors usually take between 20 and 50 percent stake in the companies they help. Sometimes the exact amount is determined strictly by negotiation. However, frequently angel investors use a company’s valuation as a measure for how much ownership they should take.

How much do angel investors expect in return?

In general, angel investors expect to get their money back within 5 to 7 years with an annualized internal rate of return (“IRR”) of 20% to 40%. Venture capital funds strive for the higher end of this range or more.

How do you pay back investors?

Ways to Repay

A company can simply repay the loan and interest owed to the investor or buy back the investor’s shares in the company at an agreed-on buyback price. If large lump-sum cash transactions may stretch your company’ finances too thin, you can consider paying dividends to your stockholders.