Status
Realized
Realized status means the angel investor has received some or all returns from the investment. This can happen through IPO (selling shares on public markets), acquisition (cash or stock consideration), secondary sale, or dividend distributions. Realized investments are the ultimate measure of portfolio performance.
Criteria
- Partial or full liquidity event occurred
- Investor received cash or liquid securities
- Returns can be calculated against initial investment
- Tax events have been triggered
Implications for Investors
- Capital has been returned (partially or fully)
- ROI and multiple can be calculated
- Tax obligations on capital gains
- Freed capital available for redeployment
Frequently Asked Questions
What counts as a "realized" return?
Any event where you receive cash or liquid securities in exchange for your private shares: IPO followed by selling shares, acquisition proceeds, secondary sales, or dividend payments.
How are realized returns taxed?
In the US, gains on investments held over 1 year are taxed at long-term capital gains rates (0-20%). QSBS (Qualified Small Business Stock) exclusion under Section 1202 may eliminate up to $10M in gains if the company qualifies.
What is a good multiple on a realized investment?
Top-quartile angel investments return 3-10x. Exceptional investments can return 50-100x+. The median angel investment returns approximately 1x (breakeven), with most portfolio returns driven by 1-2 outlier winners.
Realized Companies (0)
No companies in this status
No portfolio company currently carries this status.