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> number of people from GitHub who are in a financial position to become true angels. How much money does one need to make to become a "true angel"?
by joeblau 10y ago
> number of people from GitHub who are in a financial position to become true angels.
How much money does one need to make to become a "true angel"?
- holman 10y agoTo be an SEC accredited investor, you have to be making 200-300k in the last two years, or a net worth of > $1M. I initially wrote that as "angel", but then changed it to "true angel" to distinguish those who might make a small investment once or twice to friends or family from those who can handle their investments a little more seriously. Or, put another way: as a founder, I feel less bad taking their money because it's not a major component of their net worth (at that point they shouldn't be investing in the first place, but yeah).
- maxxxxx 10y agoWhat are the conditions for angel investments? I remember reading that some Sun guy saw a Google demo and immediately cut them a check for 100k. Does anybody know what the conditions were?
- ohazi 10y ago"some Sun guy" being founder Andy Bechtolsheim, who was already a hundred-millionaire at the time.
- maxxxxx 10y agoI wonder how big his share of the company was. I suppose he didn't do it out of sheer goodness.
- cpr 10y agoOf Google? Apparently enough to make O($billion). (I knew Andy back when he was a grad student designing SUN-1 (Stanford University Network) boards, pre-Sun, etc., when we were sharing his design for the Imagen image processor (TeX project spin-off.) An extraordinary fellow even back then.)
- maxxxxx 10y agoYes, of Google. Let's say you have the super bright idea and somebody like him gives you 100k what percentage does he want?
- arohner 10y agoQuick back of the envelope: let's define angel as someone who can write 10, $25k checks a year. Let's say they have a yearly lifestyle expense of $250k, so they need to make $500k/year off their wealth. Then, assume they make between 4-8%/year on their investments. so that's $6-12M in the bank.
- ThrustVectoring 10y agoI usually just multiply the yearly income stream by 20 rather than futzing with rate-of-return calculations. It's way easier for napkin math and gives about the same answer ($10M in this case).
- arohner 10y agoAgreed, I was just showing my work.