How The Angel Company Will Make Money
The Angel Company may retain a small percentage of the startup’s equity as payment for the service of raising capital
The Angel Company will keep fees to a minimum to encourage startup companies to seek financing by selling their equity online. The intent of these fees are only to pay for the overhead of listing a startup and selling its equity to non-accredited investors.
However, by keeping a small percentage of the startup’s equity The Angel Company will gradually build up a portfolio of startup companies. Most will fail but those that succeed will succeed greatly. This is the strategy of recent startup “accelerators” like YCombinator