Angel Returns Take Decade

Sam Parr and Shaan Puri discuss their experiences with angel investing returns, highlighting the long-term nature of the investment and the emotional journey of waiting for returns.

• Angel Investing Returns Timeline:

  • Takes 10+ years to see significant returns
  • Returns come in waves rather than steadily
  • Initial years feel like "just spending money"

• Sam's Recent Investment Outcomes (2019 investments):

  • One investment achieved 50x return (on paper)
  • Another achieved 12x return (on paper)
  • Both are unrealized gains, not actual exits

• Psychological Aspects:

  • Initial period feels like "money just leaving bank account"
  • Difficult to count investments as part of net worth
  • Uncertainty during waiting period: "is this ever going to work?"
  • Relief when "eggs start hatching" and showing returns

• Investment Strategy Perspective:

  • Need patience and willingness to wait
  • Must be comfortable with money leaving account without immediate returns
  • Success comes in waves rather than steady progress
  • Paper returns don't equal realized gains

The conversation reveals the reality that angel investing requires significant patience and emotional fortitude, with the potential for substantial returns only materializing after extended periods.