OK, I`m considering pursuing angel investors to fund my business idea. What I don`t fully understand is, how does the angel`s payout work? That is, how much is the "standard deal"? Does an angel expect an overall percentage on his investment? If yes, what is it? 50%? 100%? 200%?
Let`s say for argument`s sake that it`s 200%. Let`s also say my investor invests $10,000. That means when it`s all said and done, the investor should have $30,000 in his pocket. So my question is, how does the investor get paid if I never go public and sell stock? Do we just agree, "Hey, if the business is profitable, you`ll triple your money in three years?"
I`d appreciate any explanations and/or ideas on this.