An angel investor funds a startup with $120,000 for a 20% equity stake. One year later, she invests an additional $60,000 to maintain her ownership percentage during a new funding round. If the company is valued at $1.2 million post-investment, what percentage of the company does her total stake now represent?

Mon, 04 May 2026 09:57:22 +0000

**Why Angel Investing Models Are Shaping Startup Investment Trends in the U.S. — And What Your Equity Stands Today** The increasing visibility of angel investors backing early-stage startups is reshaping how entrepreneurs see their next funding round. With innovation accelerating across sectors and growing demand for agile capital, VCs and solo angels are paving new paths for startups seeking both funding and long-term ownership. One consistent strategy gaining traction: investing $120,000 for 20% equity, then reinvesting additional capital to preserve stake during later rounds. This pattern reflects not just financial commitment—but a strategic alignment with founders navigating uncertain market conditions. Whether driven by economic recovery post-pandemic, remote work evolution, or rising innovation in tech, healthcare, and green energy, angel investors are proving key to carrying startups through scaling phases. Their early bets often validate a business model while providing mentorship and access—key ingredients for sustainable growth. ### Why Angel Investment in Startups Matters Now