Some startups seeking angel investments have an extra advantage – they’ve already received money from the federal government and started developing their products before angel money is needed. Funds from Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) grants are especially interesting because they do not dilute ownership by founders or investors, and they work in concert with angel funds to build startups’ success. Additional funds for product development combined with zero dilution is an angel investor’s dream for better and faster returns.
