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<span class="basic_member_name">Alex Zhuang</span>
Alex Zhuang
entrepreneur
Los Angeles, California
Biztalk » Indie Biz Q&A »
Posted by Alex Zhuang, Los Angeles, California | Aug 06, 2008

Subscribe to Indie Biz Q&A How are typical angel investments structured?

When an angel investor commits funds to a startup, is it only by way of equity? Or is part of it as debt? Typical Debt-Equity ratios? What are the typical exit routes for the investor? If the startup does not plan to go public, what are the exit options?


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2 Bizniks have posted replies

  • Theron Nolen
    Posted by Theron Nolen, Mesa, Arizona | Aug 13, 2008

    Alex, you might try asking this question on thefunded.com. There are a lot of angels on that site.

  • Darol Tuttle
    Posted by Darol Tuttle, Tacoma, Washington | Aug 26, 2008

    Also, remember that this is your business. Everything is subject to negotiation. You might feel you have no bargaining position. The key to that is competition. Most angel investors or capital venturists emphasize a certain industry. Depending on the industry, there may be several who are interested. The more that are interested, the more flexibility you will have in crafting a package. Another variable is the extent to which you want to be a part of the new venture. Some just want to found a great idea and cash out. Others want to found it and run it.