These deals are structured to lock gullible startups into a funding structure that returns the most amount of money for the "angel" investors for the least amou

These deals are structured to lock gullible startups into a funding structure that returns the most amount of money for the "angel" investors for the least amount of risk. Obviously $6000 isn't enough to run a startup for very long (it can take years to build a successful company), and pretty soon the founders will need to ask for more money, and give up more equity in return.