We all collectively dodged a bullet after the collapse of Silicon Valley Bank which threatened to destroy a whole generation of startups. Had the US Treasury and Federal Reserve Bank not intervened quickly, many companies would have lost their hard-won deposits and the market collapse would have made it extremely difficult for them to access new financing. Many more companies in and outside the tech sector would have struggled as their products and services stopped working because of reliance on these newly defunct tech companies’ products. While the short-term impact would have been dramatic for our entire economy, the long-term impact would have been far greater because it would have likely resulted in an unparalleled mass extinction event covering a whole generation of companies.

SAFEs! They’re apparently everywhere. And it is easy to understand why this perception persists. Y Combinator, a leading incubator, invented the original (pre-money) SAFE (Simple Agreement for Future Equity) in 2013 to provide an easy, fast and cheap way to fund the dozens of startups comprising a Y/C batch. Their rationale was simple. Companies receiving small amounts of cash should not spend much of that on legal fees or waste time negotiating complex legal terms so early in a startup’s journey.

Early-Stage investing is inherently cyclical, and for the first time in over a decade we are experiencing a downcycle. An important question leaps out: Is it better to invest more or less during a downcycle?

The Angel Capital Association, in concert with Jeffrey Lang of the Desert Angels and ACA’s proud partner Dealum, have come together to conduct an informative interview on one of 2023’s most important topics in the angel investment space: angel group collaboration.

This is Part 2 of a two-part examination of the state of the startup capital market during the past two years. For Part 1 on The Equity Seller’s Bubble of 2021, click here to access the ACA Data Insights Archive.

How the Accredited Investor Definition Unfairly Limits Investment Access for the Non-wealthy and the Need for Reform.

The Angel Investor Foundation’s Seed the Future Campaign is in full swing, and we are pleased to report that we have surpassed $1.0 million toward our $2.3 million goal!

This is Part 1 of a two-part examination of the state of the startup capital market during the past two years. Part 2 will explore the transition to an Equity Buyer’s Market in 2022. 2021 was an unusual year. Investors participated in record returns, capital raises, valuations, and founder-friendly deals, the most “exuberant” year for startup financing in two decades. What are the lessons we can learn about investing during and after startup capital market bubbles?

By: Pat Gouhin, Chief Executive Officer

After a tireless effort ultimately met with success, Louisiana angel investors are able to celebrate new opportunities for the early-stage ecosystem!  On August 20, 2021, Louisiana Angel Investor Tax Credit program rule changes made by Louisiana Economic Development went into effect.  This tax credit is now available for investments that are in the form of convertible or subordinate debt.  The significant change enhances the availability of capital for Louisiana-based companies. 

By: Adam Winter, Chief Technology Officer at Clarus R+D, Ohio TechAngel Funds

We all know starting a business or new offering is hard. But starting it just before, or during a global pandemic and navigating it without a historical reference for guidance, is even harder. Fortunately, there is a tax credit solution for those who started a new product, service, or business after February 15, 2020, to help alleviate the financial burden associated with lost revenue or shutdowns due to COVID-19. Eligible startups may qualify for tax credits as part of the Employee Retention Tax Credit (ERTC) Startup Recovery provision.