Simple: The right investor is someone who wants to invest on standard terms at a good valuation relative to your current stage. Extra bonus points for someone who has relevant industry connections that could accelerate your business and is willing - at the right time - to make introductions for you.

But you should have really quite low expectations of most angel investors. Certainly they should have NO operational control of the business. Although I want to be as helpful as possible to companies I invest in, it's entirely for the entrepreneur to drive me, not the other way around. There are very few exceptions to this rule, for example when angels who actually do have very recent and relevant experience want to back someone who is inexperienced and need oversight in order to feel comfortable investing early. But this is a real rarity.

Finally, to answer your question about what entrepreneurs do when they receive funding, they should spend it in the best possible way to accelerate the success of the business.

I'd be happy to talk to you in a call to provide more clarity on the matter and also discuss when is the right time to accept investment. If you have people willing to back you, that's great. You want to make sure you have a clear plan and set expectations accordingly.

If you have to ask what you should do once you have funding you may want to stick to your corporate job. Real talk

1. Investors do NOT invest in ideas. It does not matter how cool or innovative it is. They don't give a shit. The only way you will get money from investor with an idea is if you have raised capital from them before or you are an industry veteran who has built a track record in the corporate world. The latter is still a tough sell.

2. You need an MVP, Proof of Concept, something tangible to show that you have thought through this and market validation. This will determine based on industry.

3. No one cares for business plans. Seeing is believing. Projections, estimates, it is all bullshit.

First, make sure you have a good lawyer who has a lot of experience in early stage deals. Glad to recommend some for you if it's helpful. In terms of your questions:

1. If you don't know the investor well, check references, ideally with entrepreneurs they have funded. Meet the investor several times to ensure that you'd want to spend time with them in the future.

2. The angel investor can provide guidance, but as the CEO/founder, it is up to you to drive the company, figure out what needs to be done, and do it. The investor provides capital, and you runs the company.

3. Most entrepreneurs take the funding, work on their startup for a few years, and then go bankrupt. If you don't have a sense of how to make the company successful, surround yourself with experienced people and do everything in your power to figure out how to be successful, the byproduct being that you will have given your investor a nice return.

1. When you have the luxury of choice: You chose the right angel based on:
1.1. Culture and personality fit. Do they trust you? Do you trust them?
1.2. Do they have a network of funders, mentors and business relationships they can and will open to you?
1.3. Are they experienced investors? Better if they are as they will understand how a business is built and that it takes time. The course is NEVER straight nor smooth
2. To ask for capital, you start by laying out the goals. Generally you raise 18 months of funding. Figure out what you need to accomplish to take you to profitability/ the next raise. Reverse engineer toward those goals. Create a budget. Add 25% fat.
2.1. Once you have a budget you will know how much you actually need to ask for
2.2. Set a valuation/ valuation cap
2.3. You NEVER let an angel set your goals or execution plan. You set it, stand by it and execute. Investors invest in the team that executes on the team vision.
2.4. You pivot when the MVP hits tests and the market resists, not on an opinion unless that opinion is ENTIRELY convincing. Don't confuse capital with control nor insight.
3. Good ones execute to plan, inform the investors every month with a simple financial and business update + asks