Angel investing is about a lot of things: Supporting startups, building companies, and, of course, creating a return for investors when they exit the investment. There are three basic types of exits of angel-backed companies. The positive exit results from a startup acquisition or IPO; the negative exit happens when a company goes out of business; and then there’s the dreaded “stall,” where your money is stuck in limbo for the foreseeable future. In this case, the company has been in business for a while and has reached cash flow break-even, but isn’t growing or moving toward a positive exit. After several years it’s apparent that something needs to be done if investors want liquidity, but what?
