But they pick winners at the near the same percentage as VCs.
Band of Angels posts an impressive 53% annual rate of return (IRR). But, when you back out the nine IPOs in their portfolio their returns are negative 9%. What this tells me is that up till now, their success has been largely driven by VC-backed companies. You don’t get to NASDAQ-level run rates without serious capital that goes way beyond what even Band of Angels can provide.
Also, Band of Angels is quite transparent about their track record. For every 100 companies they have invested in, 27 have achieved an exit. This is no better than the overall VC assumption in terms of exit rate.