[ductionist]

This is very unusual for any investor, especially angels. It is not, unfortunately, unusual for 'close' investors (friends, family members, etc.).

It sounds like your relative is considering investing money they can't afford to lose. This is going to be bad for both of you. Real angels make multiple investments and know that some will fail. They try to adjust for risk by doing better deals, not by micromanaging the founders they work with.

In my opinion, their behavior sounds like a huge red flag, and I wouldn't take the deal. You are not being unreasonable.