Last week I got a call from the founding CEO of a startup in which I am an angel investor. Outside investors, including me, had provided its $10 million in risk capital about three years ago. The founding group of managers, including the CEO, took sweat equity in the business. He was calling to get my consent to sell the company for $31 million. That sounded pretty good – a threefold payoff on a three-year investment.

Read the full article at HBR.org.