Comment by throwaway55671

Angel investments are small - 10s to low 100s thousands. If the founders were software engineers, they should be able to cover the investments from their savings. And if they got salary from the startup they founded, it's theirs to use however they see fit. They can also trade their stock or take loans using it as collateral. VCs usually participate in approving founder compensation, so I don't see it as funneling.