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.
It seems like a big deal until you realize there is a huge variance in prices and that 2012 isn't very long ago. The biggest and most successful ones seem to be doing just fine.