Small Business  Angel Investors Are Aiming Higher  A few weeks
ago at the Arizona Angel Investor Conference in Phoenix, Pat
Sullivan, co-founder of software success story ACT!, and John
Purtell, one of his financial backers, reenacted a negotiating
session that took place between them back in 1986. The
reenactment demonstrated to the would-be entrepreneurs in the
audience how their own negotiations might unfold.  At key
points, Purtell, the investor, had to correct himself. He
recalled that during the negotiations he had insisted on two
investor seats on the ACT! board of directors. "Today, you
wouldn't do that," he explained. "You wouldn't want to be on a
board without the right insurance."  When the discussion turned
to the stock ACT! would issue to the angel investors, Purtell
made another correction. At the time, his group took common
stock, he recalled. "Today the investors would want preferred
stock" to provide more protection in case the investment soured.
CHANGING TIMES. Those kinds of corrections we