When an Angel Investor makes an investment in a private company, it may not be all that heavenly.
Everybody cheers when the big checks are written, but the exit can be a problem for the Investor. A difficult, or delayed, or unsatisfying exit can, in turn, make the relationship for the company uncomfortable.
I'd really like to see a thorough study of the investment outcomes and performance of angel investments. My suspicion is that, more often than not, it ends up being a long-term, unproductive "dead asset" for the Investor, and an uncomfortable long-term relationship for the Company execs.
If your company doesn't go public, where does the exit for the Angel come from? Private transactions for minority interests are rarely satisfying, and enterprise transactions for small and middle market companies can be hard to find, fund, and close. This is even more true in tight economic times.
Or, maybe you've just got a healthy middle market company with a great product at a great price, and opportunities for growth, but you don't really fit the VC or Angel profile.
If you don't fit the VC profile, and you don't want the stress of an Angel investment, you might want to consider another model.
A joint venture private capital model lets you keep control of your company. You don't have to give up control, or an over-sized equity stake to get funding. You don't have to be in an industry with a ton of "sizzle", either.
You can get the capital you need to fund your growth, take the pressure off of dealing with uneven cash-flows so you can make strategic rather than survival-oriented decisions, and build your company.
Maybe most important, is that you can take out the venture partner any time you like. So, rather than being encumbered, you are free to find other sources of capital, or hit the exit on your terms and in your time...when it suits your goals, rather than your uneasy VC or Angel.
