Given the recent market volatility I found this article to be extremely relevant. The article explores how Angel Investors are tending to invest less in startups because they fear market uncertainty and found that past valuations of start ups were grossly inaccurate. The article describes that some of these tech startups funded by Angele investors are valued lower than they were in earlier fundraising rounds. In turn, as Angel investors look for new companies to invest in,they fear that these younger companies are overvaluing themselves as well.
http://www.wsj.com/articles/as-angel-investors-pull-back-valuations-take-a-hit-1453337982
Great article, Nora. Unfortunately, market volatility is likely to persist through 2016. Just this morning on CNBC’s “Squawk Box”, former PIMCO CEO and chair of President Obama’s Global Development Council, Mohamed El-Erian, warned of continuous global market volatility due to too many years of interference in the markets by central banks. The consensus from many of the guests seemed to indicate that unless invested in the medium to long-term, investors in the equities markets are in for a bumpy ride. Stay tuned for this week’s announcement from the Fed, which will further increase equity volatility. Additionally, let us not forget to keep an eye on oil!
http://www.cnbc.com/2016/01/26/mohamed-el-erian-warns-about-a-day-of-reckoning.html