This came up during a meeting this week while we were discussing how angel investment actually works and what happens if things don't go to plan.

Unlike a traditional business loan, investment normally involves an investor taking equity in return for their money, but there seem to be circumstances where agreements can become more complicated.

Can an angel investor ever ask for their original investment back, and what should founders look out for in the investment agreement?

I'd be looking closely at the "what happens if things go wrong" part. That's probably where the important stuff is hidden.

This is where I'd be wary. If they can get their money back, under what circumstances? That's the bit I'd want clarified before signing anything.

I would be interested to read the exit and failure clauses

On 04/09/2026 at 15:11, Harvey Reid said:

I would be interested to read the exit and failure clauses

Good point, Harvey.

Has anyone here had an investor ask for something they weren't expecting? 🤔