It's not really an angel investment either. Just like a VC, an angel typically hopes to cash out at some point in the future via an acquisition or IPO. In this

It's not really an angel investment either. Just like a VC, an angel typically hopes to cash out at some point in the future via an acquisition or IPO. In this case, the investor received common stock. Which means he hopes to generate a return on his investment from his share of the profits. This is in keeping with 37signals' focus on profitable companies, as opposed to startups which are built to flip.