{"id":31968,"date":"2023-10-20T14:26:30","date_gmt":"2023-10-20T14:26:30","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/startup-valuations-drop-to-lowest-in-four-years-as-angel-investors-become-increasingly-cautious-startupsmart\/"},"modified":"2023-10-20T14:26:30","modified_gmt":"2023-10-20T14:26:30","slug":"startup-valuations-drop-to-lowest-in-four-years-as-angel-investors-become-increasingly-cautious-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/startup-valuations-drop-to-lowest-in-four-years-as-angel-investors-become-increasingly-cautious-startupsmart\/","title":{"rendered":"Startup valuations drop to lowest in four years as angel investors become increasingly cautious &#8211; StartupSmart"},"content":{"rendered":"<div class=\"td-post-featured-image\"><img loading=\"lazy\" decoding=\"async\" width=\"445\" height=\"296\" itemprop=\"image\" class=\"entry-thumb\" src=\"\/wp-content\/uploads\/2016\/01\/l_investor_gone.jpg\" alt=\"\" title=\"l_investor_gone\"\/><\/div>\n<p>\u00a0<\/p>\n<p>Startup valuations are rapidly dropping as angel investors become concerned about inflated rounds and a volatile market.<\/p>\n<p>\u00a0<\/p>\n<p><a href=\"http:\/\/www.wsj.com\/articles\/as-angel-investors-pull-back-valuations-take-a-hit-1453337982\" target=\"_blank\" rel=\"noopener\">As the <i>Wall Street Journal <\/i>reports<\/a>, the average valuation for a startup receiving funding from AngelList &#8211; a crowdfunding site for angel investors &#8211; has fallen to the lowest levels since early 2012.<\/p>\n<p>\u00a0<\/p>\n<p>The average quarterly valuation reached as high as $US4.9 million in 2015 but this number has dropped down to $US4.2 million.<\/p>\n<p>\u00a0<\/p>\n<p>The number of overall angel deals has also fallen by 16%, according to Dow Jones VentureSource data.<\/p>\n<p>\u00a0<\/p>\n<p>It seems angel investors hold similar concerns as many do regarding potentially over-priced unicorn startups, most of which experienced a difficult 2015 that forced many to slash private valuations after going public.<\/p>\n<p>\u00a0<\/p>\n<p>For the smaller startups, angel investors are increasingly wary of the difficulties of raising follow-on funding due to these high valuations.<\/p>\n<p>\u00a0<\/p>\n<p>But according to angel investor Bill Payne, smart founders will still find a way.<\/p>\n<p>\u00a0<\/p>\n<p>\u201cWise entrepreneurs who want to raise money are listening,\u201d Payne <a href=\"http:\/\/www.wsj.com\/articles\/as-angel-investors-pull-back-valuations-take-a-hit-1453337982\" target=\"_blank\" rel=\"noopener\">told the <i>WSJ<\/i><\/a>.<\/p>\n<p>\u00a0<\/p>\n<p>\u00a0<\/p>\n<p><i>Follow <\/i><i>StartupSmart&nbsp;on <\/i><a href=\"https:\/\/www.facebook.com\/StartUpSmart\" target=\"_blank\" rel=\"noopener\"><i>Facebook<\/i><\/a><i>, <\/i><a href=\"https:\/\/twitter.com\/startupsmartnow\" target=\"_blank\" rel=\"noopener\"><i>Twitter<\/i><\/a><i>, and <\/i><a href=\"https:\/\/www.linkedin.com\/company\/startupsmart\" target=\"_blank\" rel=\"noopener\"><i>LinkedIn<\/i><\/a><i>.<\/i><i>&nbsp;<\/i><\/p>\n","protected":false},"excerpt":{"rendered":"<p>\u00a0 Startup valuations are rapidly dropping as angel investors become concerned about inflated rounds and a volatile market. \u00a0 As<\/p>\n","protected":false},"author":2,"featured_media":62686,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/31968"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=31968"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/31968\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/62686"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=31968"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=31968"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=31968"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}