The third perceived problem is that entrepreneurs lose control of the company when they take significant capital from angels. You need to understand that only rarely does the investment involve the purchase of a controlling interest. The investing entity may want to put a member on the board of directors, but they have no interest in displacing the founder of the company unless he or she is really fouling up. And at that point the founder SHOULD be replaced.

The last thing the investor wants to do is to have to run the company on a day-to day-basis. Angels are investors, not potential CEOs.

So when you start thinking that those angel investors want to embarrass you or that they are looking more deeply at your company's current situation than you think they should or that they are trying to come up with a deal that will enable them to take over your company, remember that such ideas are pure urban legend. The investors want you to succeed. They NEED you to succeed. And they are there to help you succeed, not to hold you back.

The only thing that will bring them the capital returns that they desire is your success.

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Joseph Ollivier is a founding member of the Utah Angels and is affiliated with the BYU Center for Entrepreneurship.