The World's richest people like Bill Gates, Mark Zuckerberg, Larry Pages, Warren Buffet and these people who are ruling the World once upon a time they don't have enough money to start a company but they have idea. The same manner there are many people in this World who have great ideas but may lack in money. Well, if an angel takes collateral as a criteria I am sure that they can proceed a bit forward (Not too high as per my expectations) So? do they still look at collateral when they found a good idea? or will they proceed to take the risk?
Collateral is not just material objects or money. There is, in fact, a third type of collateral. Lets call it Portfolio Collateral, or Portfolio Capital. It's the work you've done and documented already.
As a small-time angel donor/investor, I'm far more interested in the work you've already done on previous projects, and on the current project already, without investment.
Do you have any prior work you've done that is impressive? Built any prior businesses, even small time? I want to know what you initiated, gave up on, and battled through.
Don't have any prior work? Well, then I want to see you working on your idea without funding, or with your own money first. As I've told many people, ideas aren't worth much, what's worth money is the execution of those ideas. Don't take it from me, take it from Derek Sivers. (I link this video a lot)