Angel investors are not VC funds. They can approach risk very differently. They don't really need to spread the risk or mitigate it if they don't want to. No one is auditing their investments (besides the tax man). The angel investors I spoke to when I was running my last startup really didn't need to make a profit. They wanted to make a profit because that meant success for a business they thought should exist (and would use in their other businesses in my case), but if they didn't they've only lost some money that they could afford to lose.