That way you have some impact not just on a pure financial level but on an advisory level. Cardamone said that although his investments may pay off big if the start-ups do well, his investing is based more on an obligation to give back to the community. It's not so much the return on the investment because the reality of private investment is that it's extraordinarily risky. If you're expecting a return on your investment, you'd want to steer clear. And sometimes that's just an ear to listen.
Angels can be more sympathetic to the psychological struggles and that helps.
Others may be interested in medical or biotech. They stick with what they know. Angel investing offers an ownership position in a fledgling company and gets the investor more shares for their dollar than others who come in later. But, angels have no formal rights to direct how the company operates. If you pick right as an angel, you're likely to make a lot of money.