Search results

1 – 10 of over 2000
To view the access options for this content please click here
Article
Publication date: 1 June 2005

Roger Sørheim

The main aim of this article is to widen one's understanding of the value‐added contributions of business angels and, more specifically, their role as facilitators for…

Abstract

Purpose

The main aim of this article is to widen one's understanding of the value‐added contributions of business angels and, more specifically, their role as facilitators for further finance.

Design/methodology/approach

This article is based on in‐depth case studies of five experienced business angels. Data were collected by using a loosely structured interview guide which focused on the investment process.

Findings

Business angels add value besides the initial financial capital offered, typically in the form of strategic advice and networking. However, previous research has to a small extent examined the role of business angels as facilitators for further finance. The empirical findings in this study indicate that experienced business angels play a key role in order to facilitate further finance. Furthermore, entrepreneurs should bear in mind that the previous track record of the business angel strongly affects if and how they can facilitate further finance. Thus, active business angels can be viewed as a part of the entrepreneurial team, hence reducing the “liability of newness” for the entrepreneurial firm.

Research limitations/implications

Future research should continue to examine business angels by using insight from social capital theory. Moreover, by using larger samples the findings from this exploratory study can be tested, thus getting more reliable results to extend one's knowledge about how business angels act as facilitators for further finance.

Originality/value

This study suggests that concepts from social capital theory seem to be viable when examining how business angels work when they are securing further finance for their portfolio firms.

Details

Journal of Small Business and Enterprise Development, vol. 12 no. 2
Type: Research Article
ISSN: 1462-6004

Keywords

To view the access options for this content please click here
Article
Publication date: 18 November 2019

Gustavo Morales-Alonso, Guzmán A. Vila, Isaac Lemus-Aguilar and Antonio Hidalgo

Entrepreneurship is the basis of economic development but is somehow limited by the lack of access to financing sources, especially in the crucial moments of start-up…

Abstract

Purpose

Entrepreneurship is the basis of economic development but is somehow limited by the lack of access to financing sources, especially in the crucial moments of start-up early-stage development. For crossing the so-called “valley of death,” start-ups need to access informal finance sources, such as business angels. This study aims at defining the profile of business angels and comparing it with the existing literature.

Design/methodology/approach

A novel methodology for sampling the business angles population has been used, which extracts data from online social media networks. This allows taking a closer look at informal sources of entrepreneurial finance. A total of 500 real business angels, acting worldwide, from the LinkedIn and Crunchbase databases has been retrieved for this study.

Findings

Results point out that younger investors seem to be entering the entrepreneurial informal finance market. They are mainly males between 40 and 50 years of age, with a previous entrepreneurial record, and more highly educated than previously stated. They tend to have studies from Business Administration and Economics, although they prefer to invest in the ICT sector.

Originality/value

Besides the novel data retrieval technique for analyzing the informal sources of finance, the originality of the work lies in updating the archetype for business angels.

Details

Journal of Enterprising Communities: People and Places in the Global Economy, vol. 14 no. 1
Type: Research Article
ISSN: 1750-6204

Keywords

To view the access options for this content please click here
Article
Publication date: 1 August 1996

Richard Harrison and Colin Mason

Concern about the equity gap in the UK has existed for more than 60 years. Despite various government measures and institutional responses (e.g. the development of a…

Abstract

Concern about the equity gap in the UK has existed for more than 60 years. Despite various government measures and institutional responses (e.g. the development of a venture capital industry) an equity gap still persists. Current debate has recognized the role of the informal venture capital market as a source of risk capital for SMEs. Argues that this market is both inefficient and underdeveloped, due largely to information deficiencies which hinder contact between potential investors and entrepreneurs seeking finance. Against this background, identifies the role of business angel networks (BANs) as a key means of stimulating the flow of informational venture capital in the UK. In particular, a government scheme to provide pump‐priming assistance to establish five local BAN demonstration projects is shown to have achieved impressive results. However, with the recent emergence of a number of private sector BANs, the continued role of government is now being questioned. Further demonstrates that public sector BANs, operating on a local scale, are filling a different market niche from that of private sector BANs, which operate predominantly on a national scale. Concludes that the top priority for policy is to ensure that all parts of the UK are served by local BANs. An appropriate way forward might be to build on experimental networking arrangements between local, public sector BANs and national, privately operated BANs.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 2 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

To view the access options for this content please click here
Article
Publication date: 5 March 2018

Gianni Romaní, Miguel Atienza, Felipe Campos, Pablo Bahamondes and Rodrigo Hernández

The purpose of this paper is to identify and analyse the characteristics of high net worth individuals (HNWI) as potential angel investor in Antofagasta, the main mining…

Abstract

Purpose

The purpose of this paper is to identify and analyse the characteristics of high net worth individuals (HNWI) as potential angel investor in Antofagasta, the main mining resource periphery in Chile.

Design/methodology/approach

Using the resource periphery approach and angel investing, the authors apply a survey to a sample of 37 HNWI in this region. The data collected were analysed using descriptive statistics.

Findings

Descriptive results show that the characteristics of these individuals do not significantly differ from those exhibited by angel investors in developed countries and that HNWI show a relative high willingness to become angels and to form a network.

Research limitations/implications

This paper has some limitations regarding the size and scope of the sample. It is a relatively short sample that does not allow to make more sophisticated analysis and it is only regional and, therefore, it is not possible to make a comparison at a national level.

Practical implications

From the perspective the design of policies and programmes oriented towards the promotion of a high potential start-ups in resources peripheries, it is essential to know what the characteristics of HNWI are and their propensity to become angel investors.

Originality/value

Research on angel investment has been traditionally based on the experience of core regions in developed countries. This type of funding source, however, can play a significant role in the promotion of development and diversification in resource peripheries due to the limited access that these areas have to traditional capital funds and the orientation of angel investment towards innovative ventures, but studies from this perspective are very scarce. In this sense, this paper is pioneer in this topic in peripheral regions.

Propósito

El objetivo de este artículo es identificar y analizar las características de las personas con alto patrimonio neto como potenciales inversionistas ángeles en Antofagasta, la principal fuente de recursos minerales en la periferia de Chile.

Diseño/metodología/enfoque

A través del enfoque de las periferias de los recursos naturales y la inversión ángel, se aplicó una encuesta a una muestra de 37 personas con alto patrimonio neto en esta región. La información recogida fue analizada usando estadística descriptiva.

Hallazgos

Los resultados muestran que las características de estas personas no difieren significativamente de los inversionistas ángeles en países desarrollados y muestran un fuerte deseo de ser inversionistas ángeles y formar una red.

Limitaciones/implicaciones

Este artículo presenta algunas limitaciones en relación al tamaño y el alcance de la muestra. Es una muestra relativamente pequeña y no permite realizar análisis más sofisticados y es solo a nivel regional y, por lo tanto, no es posible comparar a nivel nacional.

Implicaciones prácticas

Desde la perspectiva del diseño de políticas públicas y programas orientadas a la promoción de empresas de alto potencial de crecimiento en las periferias de recursos naturales, es esencial conocer las características de las personas con alto patrimonio neto y su propensión a convertirse en inversionistas ángeles.

Originalidad/valor

La investigación sobre inversión ángel ha estado tradicionalmente enfocada en la experiencia de las regiones centrales de los países desarrollados. Sin embargo, esta alternativa de financiamiento puede jugar un rol preponderante en la promoción del desarrollo y la diversificación en las periferias de recursos naturales debido al limitado acceso a fuentes de capital tradicionales y la orientación de la inversión ángel hacia emprendimientos innovadores en estas regiones. Los estudios desde esta perspectiva son muy escasos. En este sentido, este artículo es pionero en la investigación de la inversión ángel en las regiones periféricas de recursos naturales.

To view the access options for this content please click here
Article
Publication date: 20 March 2017

Jaume Argerich and Claudio Cruz-Cázares

The lack of a standard definition and data sources makes it hard to compare findings and advance our knowledge in the business angel’s domain. The purpose of this paper is…

Abstract

Purpose

The lack of a standard definition and data sources makes it hard to compare findings and advance our knowledge in the business angel’s domain. The purpose of this paper is to tackle this problem by presenting a proposal of a potential definition of business angels that it based on ten issues identified in 30 years of business angels’ research.

Design/methodology/approach

The paper reviews 24 studies on business angels and classifies definition inconsistencies found in ten different issues. Those differences are compared with methodological choices on sampling and with subsequent results.

Findings

The authors observe a connection between definitional and sampling choices, and the results obtained. Inconsistent definitions can lead to results that are more than 400 times higher in terms of investment per project, for example.

Research limitations/implications

The authors believe that the main implication of proposing a standard definition of business angles could help the academia in decreasing the great observed diversity which is actually leading to inconsistent and incomparable results that limit our understanding of this phenomenon.

Originality/value

This paper differs from previous studies as it tackles the problem by identifying the definitional issues and presents a framework in order to build a consensus definition, rather than just comparing definitions.

Details

Management Decision, vol. 55 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

To view the access options for this content please click here
Book part
Publication date: 26 December 2016

John Y. Lo

Abstract

Details

Angel Financing in Asia Pacific
Type: Book
ISBN: 978-1-78635-128-9

To view the access options for this content please click here
Book part
Publication date: 26 December 2016

Poh Kam Wong and Douglas Abrams

Abstract

Details

Angel Financing in Asia Pacific
Type: Book
ISBN: 978-1-78635-128-9

To view the access options for this content please click here
Book part
Publication date: 26 December 2016

John Y. Lo

Abstract

Details

Angel Financing in Asia Pacific
Type: Book
ISBN: 978-1-78635-128-9

To view the access options for this content please click here
Article
Publication date: 6 March 2009

Stephanie A. Macht and John Robinson

Entrepreneurial businesses often face financial and experiential gaps, which can constrain their growth. Business angels (BAs) can provide sources of financial, human and…

Abstract

Purpose

Entrepreneurial businesses often face financial and experiential gaps, which can constrain their growth. Business angels (BAs) can provide sources of financial, human and social capital to overcome these gaps. Building on the work by Munck and Saublens, this paper aims to introduce a framework that seeks to provide a detailed understanding of the benefits that BAs can bring to the firms in which they invest.

Design/methodology/approach

In order to obtain a detailed understanding of the benefits that BAs bring to their investee companies, semi‐structured, in‐depth telephone interviews were conducted from an investee perspective. The key managers of nine angel‐funded companies were purposefully selected and the transcribed interviews analysed with the help of common qualitative analysis techniques.

Findings

According to investee managers, BAs provide benefits in all four areas of the proposed framework. Specifically, BAs: help overcome funding gaps; fill knowledge/experience gaps through provision of their own expertise and involvement; provide a wide range of contacts and leverage further funding, including their own follow‐on finance.

Research limitations/implications

The anonymous nature of the BA market requires convenience sampling, which, in addition to the small sample size used, does not allow for generalisability. The use of telephone interviews instead of face‐to‐face interviews did not allow for observation of non‐verbal cues. Nevertheless, the study identified various areas in need of further research.

Originality/value

In‐depth interview data enabled a detailed exploration of the financial and non‐financial benefits of BA funding from an under‐utilised investee perspective. The paper's main value, however, lies in establishing the usefulness of a framework showing BAs' benefits in a structured manner.

Details

International Journal of Entrepreneurial Behavior & Research, vol. 15 no. 2
Type: Research Article
ISSN: 1355-2554

Keywords

To view the access options for this content please click here
Article
Publication date: 1 December 2004

Hannu Jungman and Marko Seppä

The increased capital intensity of venture capital supply and the increased knowledge intensity of new venture supply have created a knowledge gap and recreated a capital…

Abstract

The increased capital intensity of venture capital supply and the increased knowledge intensity of new venture supply have created a knowledge gap and recreated a capital gap between new venture activity and venture capital industry. This development has given rise to an all‐new breed of players. In this descriptive, qualitative study, V2C activity is explored in a local context through comparison of cases Tampere (Finland) and Silicon Valley (USA). In Silicon Valley, the dominant group of V2C players is business angels, whereas in Tampere, publicly funded incubators play the most visible role in new venture development. Nevertheless, in both areas, five different categories of V2C players are represented, and, in both, bridge the gaps to a significant extent.

Details

Qualitative Market Research: An International Journal, vol. 7 no. 4
Type: Research Article
ISSN: 1352-2752

Keywords

1 – 10 of over 2000