Yes, this is right. An angel or early investor should not be <expecting> any capital return until a proper exit. Especially if that "return" is coming from incr

Yes, this is right. An angel or early investor should not be <expecting> any capital return until a proper exit. Especially if that "return" is coming from incremental capital being raised by the startup. Later in the game, when the business is de-risked and there is more demand for the company than shares to be sold, things may be different. This is why you see late-stage mezzainine investments that might take out early investors before an IPO. That is merely because those guys are momentum players, and the original investors' work in taking the actual risk of the business has been already done.