What type of return can I expect?
Given that the concept and challenge about startup investing is in finding and ultimately funding startups that are about to/or will eventually take off, answering this question is extremely difficult. Some of your investments will be yield nothing while others can potentially provide returns in excess of 1000%.
The standard rule of thumb is the “1/3 rule” in the venture world is– 1/3 of companies have a positive returns, 1/3 of companies break even, and 1/3 of companies go out of business. In a balanced portfolio of 10 or more startup investments, it may be the case that one or two companies will generate returns that create positive ROI for the whole portfolio.