In what context is "equity" used concerning angel investment?

In the context of angel investment, "equity" refers specifically to ownership in the company being funded. When angel investors provide capital to a startup or emerging business, they typically do so in exchange for a stake or share in the company. This means that the investors acquire equity, which represents their ownership interest. As the company grows and potentially increases in value, the worth of that equity may also increase, providing a return on their investment.

Other terms related to profits made from sales, types of salaries, or government grants present different concepts that do not directly relate to the ownership interest that equity signifies in the context of angel investing. Instead, angel investors are primarily motivated by the potential for long-term financial returns through capital gains as the business flourishes, which stems from their equity stake in the company.