Shanghai Proposes Compensating Angel Investors for Losses
January 26, 2016 at 10:27 AM EST
To promote innovation, Shanghai is floating a draft proposal to compensate angel investors for losses. Here's how it works: the program will cover up to 60% of losses, with a maximum payoff of $460,000 for any one project. Very early stage investments will be limited to half that, suggesting payouts are based on the maturity level of the startup. A single angel investor will be limited to $920,000 in a particular year. Presumably, there will also be standards to determine whether a project is innovative, though press reports did not discuss that issue. And, of course, the projects must be based in Shanghai. More details.... Share this with colleagues: // //