I can tell you about a startup I worked in(EU)

So the CFO was the son of a guy that knew the guy that eventual became the angel investor.

So this angel investor invested 5 million, initially. Then he made us join his incubator with his other 6 startups. There he had other friends investing in these startups. So let's say 6 friends invest 30 million in 6 startups. And each startup gets 5x6 = 30 million.

Our total invst. capital reached 35 mill.

Here is my point: One the Christmas party we had, we were having the investors there and they got drunk.

So you would think that investing this kind of money is a risk? Not when they mentioned they they make over 100 million each year. That is every year.

So for them risking %5 of their annual income, is not really a risk. Actually make their money back already there and then, since less income taxes + more write off tax.

So instead of pay double tax because they have more money the actually pay 1/2 tax.