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 But starting it just before, or during a global pandemic and navigating it without a historical reference for guidance, is even harder.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. 

By: Dror Futter, Legal and Business Adviser to Startups, Venture Capital Firms and Technology Companies

The SEC announced a series of amendments (likely to be effective early next year) to the rules governing private offering exemptions – by far the most frequent path for venture fundraising.  The amendments retain the same “menu” of exemptions but make incremental improvements. For the early stage community, the amendments include a very useful provision that excludes “Demo Days” from being considered general solicitations provided certain conditions are met. 

By: Marianne Hudson, ACA Executive Director

The 2018 version of a US Economic Development Administration (EDA) grant competition may be just the ticket for multiple ACA members.  The Regional Innovation Strategies program offers a total of $21 million for locally-devised strategies to help more businesses start and grow.  As the program’s director, Craig Buerstatte, put it recently, the program is a “funding opportunity for business accelerators and incubators working to support job creation and economic development, and for venture fund managers, or angel groups working to address funding shortages in startup communities.” 

By: Marianne Hudson, ACA Executive Director

The Angel Capital Association has appreciated the work of leading academics on assessing the impact of angel investors on promising entrepreneurs.  A recent blog by Laurent Blasie in the March Digest of the National Bureau of Economic Research does a particularly good job of summarizing the study: