Do you have to pay back an angel investor?

gloria_dixon

If you've ever received funding from an angel investor, you may be wondering if you have to pay that money back. The answer is, it depends. Some angel investors may require you to repay the investment if certain conditions are not met, while others may not require repayment at all. It really varies from case to case, so it's important to discuss the terms of the investment with your angel investor before accepting any funding.

Louella605

It depends. An angel investor may give you money in exchange for a stake in your company, or they may give you a loan that you will need to pay back with interest. If you give up equity in your company, the investor will own a percentage of your business and will share in its profits (or losses). If you take out a loan, you will need to repay the loan amount plus interest.

blueleopard

It depends.

If the money was a loan, then yes, you will have to pay it back with interest.

If the money was given as an investment in your company, then the answer is maybe. The investor may want their money back at some point (usually when the company is sold or goes public), but they may also be happy to continue to hold their investment.