Angel investing has no doubt increased in popularity in the past years. In 2012, 50K companies were funded with seed capital, while venture capital firms only financed around 3,148; roughly two thirds of which were follow-up investments into current portfolio companies. Investing in startups can potentially provide excellent returns of 5 to 100 times on the initial investment. To put it in perspective: An investment of $1,000 in Facebook in 2005 would today be worth approximately $624,500; a 62,450% ROI An investment of $1,000 in Airbnb in 2009 would today be worth approximately $589,667.
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