They just keep their 20% ownership of the business forever, and there is nothing about "end of contract". you don't have to do anything besides pay 20% dividend after the company has profit.
they can sell their share to others for higher price.
For angel investor resources, you can find them at startupguiding.com
I'm new to this forum and was just a bit curious about Angel Investments pay out. Let's just say that I have a small business thats worth 100,000. I receive an investment by an angel investor for 20%. After the contract ends a couple years later, how do I pay them out? What are my options? Would it be paying them the 20% worth of the business or would it be paying them in stocks?
Crowdfunding was signed into law on April 5th, 2012.
The Jobs Act will change securities regulations related to crowdfunding in early2013. Crowdfunding will make it easier for small businesses and entrepreneurs to obtain much needed access to capital.
There are a few crowdfunding sites: