Will the rewards really make the risk worthwhile?

Yes. It is important for investors to take steps to mitigate the risks involved in investing in start-ups and early stage businesses, but with high risk, come high rewards. The 2009 NESTA report analysed 1080 business angel investments made between 1998 and 2008 and found that over the decade studied, angel investors received an average of 2.2 times return on their investment over an average period of 3.6 years.

It is important to remember that most start-up and early stage businesses will fail but there are many businesses that will fly.

Read the NESTA report here