The Experts below are selected from a list of 3429 Experts worldwide ranked by ideXlab platform
Richard T. Harrison - One of the best experts on this subject based on the ideXlab platform.
-
beyond institutional voids and the middle income trap the emerging Business Angel market in malaysia
Asia Pacific Journal of Management, 2018Co-Authors: Richard T. Harrison, William Scheela, P C Lai, Sivapalan VivekarajahAbstract:Emerging economies are characterized by the presence of institutional voids which challenge and constrain the behavior of economic agents. In this paper we report on one set of agents, Angel investors, in Malaysia, which investors fear is experiencing a middle-income trap whereby economic growth and new venture formation stalls due to persistent institutional voids. This research addresses this question through interviews with 19 Malaysian Business Angel investors in 2015, utilizing a mixed-methods approach. Results indicate that Business Angels in our sample generated strong returns, though they did find it a challenge to invest in and monitor new ventures in a highly uncertain and competitive environment where there is high political uncertainty, weak legal and financial support for investors and SMEs. In order to overcome weak institutional support, Business Angel investors develop informal institutions by co-investing and networking with family members and government officials. They also conduct careful due diligence before investing and closely monitor their investee companies after investing. This research provides several theory and practice contributions with respect to Business-Angel investing in emerging economies with weak formal institutional regimes.
-
A Review and Simulation of Business Angel Investing Returns
Academy of Management Proceedings, 2017Co-Authors: Adam J. Bock, Geoff Gregson, Richard T. HarrisonAbstract:This paper investigates the uncertainty around investment returns of Business Angels. Business Angels are widely recognized as an important source of entrepreneurial finance, particularly for early stage Businesses. Does Angel investing generate attractive returns? We use data from one of the largest studies of Angel returns to populate a monte carlo simulation of returns profiles based on portfolio size and other key characteristics. The simulation explores the link between portfolio size and risk-return expectations. The study reveals important findings about portfolio size and the use of IRR as a metric. Significant risk management in Angel investing likely requires portfolios with more than 100 investments. We compare against VC returns and discuss practical and policy implications.
-
backing the horse or the jockey due diligence agency costs information and the evaluation of risk by Business Angel investors
2017Co-Authors: Richard T. Harrison, Colin MasonAbstract:This paper explores the argument that Business Angel investors are more concerned with managing and minimising agency risk than market risk. Based on data on the due diligence process from a survey of Business Angels in the UK, the paper concludes that Business Angels do view entrepreneur characteristics and experience as having the greatest impact on the perceived riskiness of an investment opportunity. Further, they emphasise personal and informal over formal sources of information in the due diligence process, and seek information on both the entrepreneur and the venture in determining valuation. Indeed, the reliance of Business Angels on short-term and subjective information to value investment opportunities leads to the conclusion that their approach to valuation is not a function of the conventional protocols of financial analysis, but of personal relations and assessment.
-
a review and simulation of Business Angel investment returns
Venture Capital: An International Journal of Entrepreneurial Finance, 2017Co-Authors: Geoff Gregson, Adam J. Bock, Richard T. HarrisonAbstract:AbstractBusiness Angels are widely recognized as a significant source of entrepreneurial finance, particularly for early-stage Businesses. However, rigorous investigation on Angel investment performance has been limited. This paper examines investment returns of Business Angels in addressing the question of whether Angel investing generates attractive returns. We review the few published studies which report on more than 100 investment exits to establish baseline returns expectations and clarify returns measurement limitations. We then use data from one of the largest studies of Angel returns to populate a Monte Carlo simulation of returns profiles to explore the link between portfolio size and the probability of the desired level of returns. The study reveals that Angel deal returns are highly skewed; smaller portfolios have higher average returns but dramatically lower median returns. In contrast with prior studies, our study shows that portfolios with more than 50 investments are required to significan...
-
The internationalisation of Business Angel investment activity: a review and research agenda
Venture Capital: An International Journal of Entrepreneurial Finance, 2016Co-Authors: Richard T. HarrisonAbstract:AbstractPrompted by the recent publication of two practitioner-led and -oriented books profiling the global expansion of the Business Angel investment phenomenon, this paper reviews the evidence for the internationalisation of this increasingly important source of entrepreneurial finance. As Business Angel activity grows in prominence in emerging markets in particular, challenges are identified in terms of the definition of the phenomenon, the importance of institutional voids in shaping the development of this activity and the role of cultural constraints in legitimising it. The paper identifies a tension between universalist and contextualist accounts of the emergence of this market which has implications for both future research and policy formation.
Colin Mason - One of the best experts on this subject based on the ideXlab platform.
-
Business Angel exits: a theory of planned behaviour perspective
Small Business Economics, 2019Co-Authors: Tiago Botelho, Richard Harrison, Colin MasonAbstract:Although there are a handful of studies on Business Angel investment returns, the Business Angel literature has given little or no attention to exits and the exit strategy. This is surprising given that a primary objective of investing is to achieve a capital gain through some form of liquidity event. Using the theory of planned behaviour (TPB) as an interpretative heuristic, we examine how exits happen: specifically, what are the motivations to seek an exit and to what extent are they planned or opportunistic? Based on multiple case studies in which Business Angels were invited to tell the story of their most recent exit(s), the evidence suggests that the majority of liquidity events are the outcome of planned behaviour. We propose a typology of Angel-backed investment exits as the basis for identifying future directions for research and developing practical advice to Angels on effective Business practices.
-
backing the horse or the jockey due diligence agency costs information and the evaluation of risk by Business Angel investors
2017Co-Authors: Richard T. Harrison, Colin MasonAbstract:This paper explores the argument that Business Angel investors are more concerned with managing and minimising agency risk than market risk. Based on data on the due diligence process from a survey of Business Angels in the UK, the paper concludes that Business Angels do view entrepreneur characteristics and experience as having the greatest impact on the perceived riskiness of an investment opportunity. Further, they emphasise personal and informal over formal sources of information in the due diligence process, and seek information on both the entrepreneur and the venture in determining valuation. Indeed, the reliance of Business Angels on short-term and subjective information to value investment opportunities leads to the conclusion that their approach to valuation is not a function of the conventional protocols of financial analysis, but of personal relations and assessment.
-
patient capital in entrepreneurial finance a reassessment of the role of Business Angel investors
Socio-economic Review, 2016Co-Authors: Richard T. Harrison, Tiago Botelho, Colin MasonAbstract:The debate on patient capital, particularly in the varieties of capitalism literature, concentrates on institutions and public markets. In this paper we take an entrepreneurial finance perspective to examine the investment attitudes and behaviours of Business Angels. These represent the biggest source of external risk capital for new and young growing companies and therefore play a critical role in entrepreneurial ecosystems. Drawing on both a detailed review of previous research on Business Angel investment time horizons, investor engagement and exit behaviour and new survey evidence we conclude that only a minority of Angels could be defined as being exit-centric investors. It can be concluded that the vast majority of Angels are patient investors in terms of investment intentions, engagement and exit behaviour, largely by default rather than intent. Most do not consider the exit at the investment appraisal stage nor the need for patience.
-
the transformation of the Business Angel market empirical evidence and research implications
Venture Capital: An International Journal of Entrepreneurial Finance, 2016Co-Authors: Colin Mason, Tiago Botelho, Richard T. HarrisonAbstract:Business Angel investing – a key source of finance for entrepreneurial Businesses – is rapidly evolving from a fragmented and largely anonymous activity dominated by individuals investing on their own to one that is increasingly characterised by groups of investors investing together through managed Angel groups. The implications of this change have been largely ignored by scholars. The paper examines the investment activity and operation of Angel groups in Scotland to highlight the implications of this change for the nature of Angel investing. It goes on to argue that this transformation challenges both the ongoing relevance of prior research on Business Angels and current methodological practices, and raises a set of new research questions.
-
the role of the exit in the initial screening of investment opportunities the case of Business Angel syndicate gatekeepers
International Small Business Journal, 2016Co-Authors: Colin Mason, Tiago BotelhoAbstract:The exit process has been largely ignored in Business Angel research yet, the practitioner community identifies the difficulty in achieving exits as the most pressing problem for investors. This is attributed to the failure of investors to adopt an exit-centric approach to investing. This article explores the validity of this claim analysing the investment approach of 21 ‘gatekeepers’ (managers) of Angel groups in Scotland and Northern Ireland. Most gatekeepers state that they do consider the exit decision when investing. However, this is contradicted by a verbal protocol analysis which indicates that exit is not a significant consideration in the initial screening process. The small number of exits achieved by the groups is consistent with the general lack of an exit-centric approach to investinging. This lack of scrutiny upon the exit is likely to have a negative impact on the level of future Angel investment activity.
Gilles Certhoux - One of the best experts on this subject based on the ideXlab platform.
-
Sustaining trust to cross the Valley of Death: A retrospective study of Business Angels’ investment and reinvestment decisions
Technovation, 2020Co-Authors: Vincent Lefebvre, Gilles Certhoux, Miruna Radu LefebvreAbstract:Abstract This paper explores and explains how, why and with what consequences Business Angels' trust in the entrepreneur affects their decisions to invest, reinvest or withdraw funding in the Valley of Death (VoD). Drawing on the VoD literature and on Business Angel research, we retrospectively study two contrastive cases of success and failure of French start-ups operating in the IT sector over a period of two and nine years, respectively, by taking the dyadic relationship between Business Angels and entrepreneurs as unit of analysis. We document the Business Angels' trust evolution over time and we show how trust shifts facilitate or damage the entrepreneurs' journey through the VoD. We offer a process-model of sustaining Business Angels’ trust in entrepreneur-Business Angel relationships to cross the VoD, thus addressing recent calls for more in-depth examinations of social aspects in investment and post-investment Business Angel research.
-
relation entrepreneur Business Angel et creation de valeur l exemple du cas ate
Vème Congrès International de l'Académie de l'Entrepreneuriat, 2007Co-Authors: Gilles CerthouxAbstract:Resume : L’objet de cet article est d'explorer, a partir d’une etude de cas, la demarche suivie par un entrepreneur pour « choisir » l’investisseur le plus a meme de lui apporter les ressources necessaires au developpement de son entreprise . Si la relation entrepreneur investisseur est souvent percue sous un angle conflictuel generant des couts d’agence, le cas etudie illustre les apports d’une relation etablie sur la cooperation et la confiance entre les deux parties. L’entrepreneur, apres avoir evalue ses besoins en « capital pertinent » (apports financiers plus competences, acces a un reseau et implication de l’investisseur a ses cotes) (« relevant capital » Saetre 2003), identifie et convainc l’investisseur capable de lui apporter cette ressource. En prenant appui sur un cas reel (investissement de Business Angels dans une entreprise en phase de creation) comme terrain d'analyse, nous montrerons que le Business Angel est l’investisseur le plus capable de pouvoir etablir ce type de relation avec l’entrepreneur. Cette recherche montre que la valeur creee au cours de cette relation provient des « gains de competences » (Charreaux 2006). Elle repose sur deux parametres : un entrepreneur conscient de ses besoins et souhaitant instituer une relation de confiance un investisseur capable d’apporter les ressources recherchees par l’entrepreneur.
-
Gouvernance et dynamique de l'actionnariat en situation entrepreneuriale : le cas des Business Angels
Revue de l'Entrepreneuriat, 2006Co-Authors: Gilles Certhoux, Emmanuel ZenouAbstract:Par son implication forte auprès de l'entreprise qu'il accompagne, le rôle d'actionnaire du Business Angel est particulier. Faut-il analyser ce rôle comme une réponse à des problèmes de contrôle ou de conflits observés dans l'entreprise ? Ou est-il le vecteur d'une relation plus complexe, lui permettant d'apporter un ensemble de connaissances nécessaires à la pérennité de l'entreprise accompagnée ? Cette problématique fait écho aux débats caractérisant l'évolution des différentes formes de gouvernance d'entreprise, de la gouvernance "disciplinaire" classique à une gouvernance davantage cognitive. Nous pensons que la problématique de l'accompagnement d'une firme entrepreneuriale par un Business Angel gagne à être articulée avec une réflexion sur la gouvernance d'entreprise. En prenant appui sur un cas réel d'accompagnement (investissement d'un Business Angel dans une entreprise en phase de création) comme terrain d'analyse, nous montrerons que le Business Angel suggère une forme particulière de gouvernance, entre gouvernance classique et cognitive, et qu'elle figure une analyse dynamique de l'actionnariat en situation entrepreneuriale.
-
gouvernance et dynamique de l actionnariat en situation entrepreneuriale le cas des Business Angels
Post-Print, 2006Co-Authors: Gilles Certhoux, Emmanuel ZenouAbstract:Par son implication forte aupres de l'entreprise qu'il accompagne, le role d'actionnaire du Business Angel est particulier. Faut-il analyser ce role comme une reponse a des problemes de controle ou de conflits observes dans l'entreprise ? Ou est-il le vecteur d'une relation plus complexe, lui permettant d'apporter un ensemble de connaissances necessaires a la perennite de l'entreprise accompagnee ? Cette problematique fait echo aux debats caracterisant l'evolution des differentes formes de gouvernance d'entreprise, de la gouvernance "disciplinaire" classique a une gouvernance davantage cognitive. Nous pensons que la problematique de l'accompagnement d'une firme entrepreneuriale par un Business Angel gagne a etre articulee avec une reflexion sur la gouvernance d'entreprise. En prenant appui sur un cas reel d'accompagnement (investissement d'un Business Angel dans une entreprise en phase de creation) comme terrain d'analyse, nous montrerons que le Business Angel suggere une forme particuliere de gouvernance, entre gouvernance classique et cognitive, et qu'elle figure une analyse dynamique de l'actionnariat en situation entrepreneuriale.
Rudy Aernoudt - One of the best experts on this subject based on the ideXlab platform.
-
An assessment of government funding of Business Angel networks in Flanders
Regional Studies, 2010Co-Authors: Veroniek Collewaert, Sophie Manigart, Rudy AernoudtAbstract:We evaluate whether government intervention through the subsidization of Business Angel networks enhances regional economic growth. We show that, firstly, BANs reduce the information and financing problems entrepreneurial companies face. Secondly, these companies contribute to economic development and growth. Thirdly, there are positive indicators of future potential, such as an upward evolution in value creation and ability to raise follow-on financing. Finally, the programme has many positive indirect effects. This leads us to tentatively conclude that public BAN support is warranted. However, to make this conclusion more robust requires a longer-term evaluation.
-
assessment of government funding of Business Angel networks in flanders
Regional Studies, 2010Co-Authors: Veroniek Collewaert, Sophie Manigart, Rudy AernoudtAbstract:Collewaert V., Manigart S. and Aernoudt R. Assessment of government funding of Business Angel networks in Flanders, Regional Studies. The paper evaluates whether government intervention through the subsidization of Business Angel networks (BANs) enhances regional economic growth in Flanders, Belgium. It shows that, firstly, BANs reduce the information and financing problems entrepreneurial companies face. Secondly, that these companies contribute to economic development and growth. Thirdly, that there are positive indicators of future potential, such as an upward evolution in value creation and the ability to raise follow-on financing. Finally, the programme has many positive indirect effects. This leads to a tentative conclusion that public BAN support is warranted. However, to make this conclusion more robust requires a longer-term evaluation. Collewaert V., Manigart S. et Aernoudt R. Une evaluation des finances publiques en faveur des reseaux de bailleurs de fonds en Flandres, Regional Studies. On cher...
-
an assessment of government funding of Business Angel networks in flanders
2010Co-Authors: Veroniek Collewaert, Sophie Manigart, Rudy AernoudtAbstract:The paper evaluates whether government intervention through the subsidization of Business Angel networks (BANs) enhances regional economic growth in Flanders, Belgium. It shows that, firstly, BANs reduce the information and financing problems entrepreneurial companies face. Secondly, that these companies contribute to economic development and growth. Thirdly, that there are positive indicators of future potential, such as an upward evolution in value creation and the ability to raise follow-on financing. Finally, the programme has many positive indirect effects. This leads to a tentative conclusion that public BAN support is warranted. However, to make this conclusion more robust requires a longer-term evaluation.
-
an assessment of government funding of Business Angel networks a regional study
2007Co-Authors: Veroniek Collewaert, Sophie Manigart, Rudy AernoudtAbstract:In this paper we evaluate whether government intervention through the public funding of Business Angel networks is warranted. Based on a regional study of four BANs, we find that these subsidies reach their goals in terms of contribution to economic development and reducing financing and information problems entrepreneurial companies face. However, they are partly based on the wrong assumptions as these companies are not (yet) value creating. Therefore, we advise caution in using the market failure argument as grounds for government intervention in the informal risk capital market.
-
executive forum public support for the Business Angel market in europe a critical review
Venture Capital: An International Journal of Entrepreneurial Finance, 2007Co-Authors: Rudy Aernoudt, Amparo San Jose, Juan RoureAbstract:Abstract Various levels of government have implemented instruments to promote Business Angel investment, often mirroring those used to support the institutional venture capital market. The paper reviews the existing practices at a point in time when intervention in the field of Business Angels is becoming increasingly popular in Europe. Governments are looking for innovative ways to enhance Business Angel investments and the evolution of the policy in the field is rather trial and error based. We see a shift from classical support to network creation and improvement of the fiscal environment, towards guarantee schemes for Angel investments and co-investment schemes. This latest, most recent, approach is analysed by a detailed case study of the Belgian Business Angels Plus (BA+) scheme, which matches the financing provided by a Business Angel investor and the entrepreneur. In its initial two and a half years of operation the BA+ scheme has received close to 70 applications, of which just over 20 have been ...
Tiago Botelho - One of the best experts on this subject based on the ideXlab platform.
-
Business Angel exits: a theory of planned behaviour perspective
Small Business Economics, 2019Co-Authors: Tiago Botelho, Richard Harrison, Colin MasonAbstract:Although there are a handful of studies on Business Angel investment returns, the Business Angel literature has given little or no attention to exits and the exit strategy. This is surprising given that a primary objective of investing is to achieve a capital gain through some form of liquidity event. Using the theory of planned behaviour (TPB) as an interpretative heuristic, we examine how exits happen: specifically, what are the motivations to seek an exit and to what extent are they planned or opportunistic? Based on multiple case studies in which Business Angels were invited to tell the story of their most recent exit(s), the evidence suggests that the majority of liquidity events are the outcome of planned behaviour. We propose a typology of Angel-backed investment exits as the basis for identifying future directions for research and developing practical advice to Angels on effective Business practices.
-
patient capital in entrepreneurial finance a reassessment of the role of Business Angel investors
Socio-economic Review, 2016Co-Authors: Richard T. Harrison, Tiago Botelho, Colin MasonAbstract:The debate on patient capital, particularly in the varieties of capitalism literature, concentrates on institutions and public markets. In this paper we take an entrepreneurial finance perspective to examine the investment attitudes and behaviours of Business Angels. These represent the biggest source of external risk capital for new and young growing companies and therefore play a critical role in entrepreneurial ecosystems. Drawing on both a detailed review of previous research on Business Angel investment time horizons, investor engagement and exit behaviour and new survey evidence we conclude that only a minority of Angels could be defined as being exit-centric investors. It can be concluded that the vast majority of Angels are patient investors in terms of investment intentions, engagement and exit behaviour, largely by default rather than intent. Most do not consider the exit at the investment appraisal stage nor the need for patience.
-
Categorisations of Business Angels: an overview
Handbook of Research on Business Angels, 2016Co-Authors: Roger Sørheim, Tiago BotelhoAbstract:Previous studies of Business Angels have shown that the population is very heterogeneous, with various studies developing typologies to describe different categories of investor. This chapter provides a critical review of previous research on Business Angel categorisations to highlight the key contributions. The authors note that previous studies have categorised Business Angels using a wide range of variables, mostly grouping investors according to investors’ characteristics and often derived from data rather than theory. The main contribution of these studies has been to develop a more sophisticated and nuanced view of the definition and behaviour of Business Angels – which breaks free from an oversimplified stereotypical view of Business Angels. However, in many cases the categorisations are fragmented, lacking a theoretical anchor, supply-side driven and rather static. The authors conclude that these studies have not significantly influenced policymakers and policies to target different categories of Business Angel.
-
the transformation of the Business Angel market empirical evidence and research implications
Venture Capital: An International Journal of Entrepreneurial Finance, 2016Co-Authors: Colin Mason, Tiago Botelho, Richard T. HarrisonAbstract:Business Angel investing – a key source of finance for entrepreneurial Businesses – is rapidly evolving from a fragmented and largely anonymous activity dominated by individuals investing on their own to one that is increasingly characterised by groups of investors investing together through managed Angel groups. The implications of this change have been largely ignored by scholars. The paper examines the investment activity and operation of Angel groups in Scotland to highlight the implications of this change for the nature of Angel investing. It goes on to argue that this transformation challenges both the ongoing relevance of prior research on Business Angels and current methodological practices, and raises a set of new research questions.
-
the role of the exit in the initial screening of investment opportunities the case of Business Angel syndicate gatekeepers
International Small Business Journal, 2016Co-Authors: Colin Mason, Tiago BotelhoAbstract:The exit process has been largely ignored in Business Angel research yet, the practitioner community identifies the difficulty in achieving exits as the most pressing problem for investors. This is attributed to the failure of investors to adopt an exit-centric approach to investing. This article explores the validity of this claim analysing the investment approach of 21 ‘gatekeepers’ (managers) of Angel groups in Scotland and Northern Ireland. Most gatekeepers state that they do consider the exit decision when investing. However, this is contradicted by a verbal protocol analysis which indicates that exit is not a significant consideration in the initial screening process. The small number of exits achieved by the groups is consistent with the general lack of an exit-centric approach to investinging. This lack of scrutiny upon the exit is likely to have a negative impact on the level of future Angel investment activity.
