There are a number of reasons why an angel investor would invest in a startup. The most common reason is that the angel investor believes in the team and the product or service that the startup is offering. The angel investor also sees the potential for the startup to grow and scale quickly, which can provide a great return on investment.
Another reason an angel investor may invest in a startup is because of the tax benefits that can be gained. The investment can be written off as a loss if the startup fails, and the angel investor can also get a lower tax rate on the profits if the startup is successful.
Lastly, investing in a startup can also be a way for the angel investor to diversify their portfolio. This can help to reduce risk and provide a steadier return on investment over time.