Amid Chaotic Market, Angel Investors Pull Back

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

New Laws Open Additional Crowdfunding Opportunities

Interesting article discussing how new state and federal laws now allow Illinois businesses to raise up to $4M from non-accredited investors. In short, this will allow for crowdfunding projects much larger than those ordinarily seen on platforms such as Kickstarter, perhaps even including crowdfunded shopping centers or local business. However, some fear the legal complications of having so many small scale investors claiming interests in the business.

http://www.chicagotribune.com/bluesky/originals/ct-big-ideas-equity-crowdfunding-bsi-20160119-story.html