After valuations for young companies seeking funding soared to five-year highs last year, some angel investors—or wealthy individuals who buy stakes in startups—are starting to pull back. On AngelList, a crowdfunding site aimed at such investors, the average valuation for a company receiving funding reached $4.9 million for two quarters last year, its highest level in five years. But valuations dropped to $4.2 million in the fourth quarter, the lowest level since early 2012. Dow Jones VentureSource data shows that deals involving angel investors fell by 16% last year. “Are angels more cautious? Most likely, yes,” said AngelList co-founder Naval Ravikant. Angel investors have been a growing source of financing for early-stage companies as they try to get in on the ground floor of the next Uber ride-sharing service or Twitter social-media platform. 

http://www.wsj.com/articles/as-angel-investors-pull-back-valuations-take-a-hit-1453337982?utm_content=buffere1a9a&utm_medium=social&utm_source=twitter.com&utm_campaign=buffer