Should angel investors get tax credits to invest in small businesses? Critics say they don't deliver for the price spent. David Weaver, founder and chairman of
Great Lakes Angels
in Bloomfield Hills says they do.
"But there are two ways that tax credits can increase the amount of funding available for start-up companies. They keep more money in the pockets of existing angel investors—money that can be plowed back into a company an investor has already funded, as it continues to grow, or that can help the investor support another company that might otherwise go unfunded. And credits can help create new angel investors—people who otherwise would put their money in financial instruments, real estate, art or some other more-proven asset if a tax credit didn't make investing in a start-up worth considering."
Read both sides of the argument here