The Experts below are selected from a list of 3525 Experts worldwide ranked by ideXlab platform
Colin Mason - One of the best experts on this subject based on the ideXlab platform.
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Early Sources of Funding (2): Business Angels
2018Co-Authors: Colin Mason, Tiago BotelhoAbstract:Business Angels are private individuals–predominantly cashed-out entrepreneurs–who invest their own money in new and early-stage Businesses and, having invested, then draw upon their own Business experience to support these ventures in a variety of ways. As such, they are often referred to as informal investors, or informal venture capitalists. Whereas the attention of scholars and the media is largely focused on institutional venture capital, Business Angels actually finance substantially more Businesses, although their investments are much smaller, hence the overall amount they invest is smaller. This chapter will examine the role that Business Angels play in the financing of entrepreneurial ventures. It starts with a consideration of definitional issues–who are Business Angels? The shift in the nature of angel investing from being a largely invisible and individual activity to one that is increasingly organized into visible groups is then discussed. This is followed by a review of the types of investments that Business Angels make. The remainder of the chapter examines how Business Angels make their investment decisions and the key criteria that they take into account in their investment decisions. This discussion is structured around the stages in the investment decision–deal origination, initial screening of opportunities, detailed evaluation, negotiation and contracting, the post-investment relationship with the entrepreneur and the exit.
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Handbook of Research on Business Angels - Handbook of Research on Business Angels
2016Co-Authors: Hans Landström, Colin MasonAbstract:This book synthesizes 30 years of research on Business Angels by charting the significant role they play in the financing of entrepreneurial Businesses in both developed and emerging economies. The expert group of contributors examine Business Angels themselves, the evolution of the market and the role of public policy in influencing angel investment. Finally, the editors provide an agenda for future research on Business Angels.
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Business Angels as a research field
Handbook of Research on Business Angels, 2016Co-Authors: Hans Landström, Colin MasonAbstract:This book synthesizes 30 years of research on Business Angels by charting the significant role they play in the financing of entrepreneurial Businesses in both developed and emerging economies. The expert group of contributors examine Business Angels themselves, the evolution of the market and the role of public policy in influencing angel investment. Finally, the editors provide an agenda for future research on Business Angels.
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handbook of research on Business Angels
2016Co-Authors: Hans Landström, Colin MasonAbstract:This book synthesizes 30 years of research on Business Angels by charting the significant role they play in the financing of entrepreneurial Businesses in both developed and emerging economies. The expert group of contributors examine Business Angels themselves, the evolution of the market and the role of public policy in influencing angel investment. Finally, the editors provide an agenda for future research on Business Angels.
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Researching Business Angels: definitional and data challenges
Handbook of Research on Business Angels, 2016Co-Authors: Colin MasonAbstract:The chapter reviews the definition of Business Angels, stressing that love money and angel investing are conceptually different. It emphasises the key features of Business Angels: they are investing their own money, investing in private unquoted companies, investing directly and are motivated by commercial returns. However, the emergence of managed angel groups has challenged the continued validity of some aspects of this definition. The author then reviews the various ways in which researchers have sought to identify Business Angels, either for sampling purposes or to estimate the size of the market. Each of the sources reviewed has significant deficiencies. The author is therefore of the same view as Wetzel that the population of Business Angels ‘is unknown and probably unknowable’. However, he does see the emergence of angel groups as an important development, comprising a significant investment category in their own right and which is visible, in contrast to solo Angels who operate informally and so remain largely invisible. He therefore advocates that efforts should be made to collect investment information from such groups on a regular basis.
Richard T. Harrison - One of the best experts on this subject based on the ideXlab platform.
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does gender matter women Business Angels and the supply of entrepreneurial finance
Entrepreneurship Theory and Practice, 2007Co-Authors: Richard T. Harrison, Colin MasonAbstract:There is a substantial literature on the relationship between gender and access to finance. However, most studies have been concerned with access to debt finance. More recently, the focus of this research has broadened to examine women and venture capital. This article extends the focus further by examining the role of women in the Business angel market, which is more important than the formal venture capital market in terms of both the number of ventures supported and total capital flows. Based on a detailed analysis of Business Angels in the U.K., the study concludes that women investors who are active in the market differ from their male counterparts in only limited respects. Future research into women Business Angels, and the possible existence of gender differences, needs to be based on more fully elaborated standpoint epistemologies that focus on the experience of the woman angel investor per se, and center on the examination of the role of homophily, social capital, networking, and competition in investment behavior.
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Backing the horse or the jockey? Agency costs, information and the evaluation of risk by Business Angels
2002Co-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 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.
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venture capital market complementarities the links between Business Angels and venture capital funds in the united kingdom
Venture Capital: An International Journal of Entrepreneurial Finance, 2000Co-Authors: Richard T. Harrison, Colin MasonAbstract:The nature and extent of complementarities between the informal and formal venture capital markets has been the subject of limited research. This paper explores systematically the nature and extent of complementarities between the formal and informal venture capital markets in the UK, and identifies the opportunities for additional collaboration. Evidence is presented from surveys of Business Angels and venture capital fund managers for four types of complementarities: co-investing in deals; sequential investing in ventures; Business Angels as investors in venture capital funds; and deal referring.
Franz H. Heukamp - One of the best experts on this subject based on the ideXlab platform.
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Do Business Angels Alter the Risk-Return Equation in Early Stage Investments?: Business Angels as Seen by Venture Capitalistsin the German Speaking Countries
The Journal of Private Equity, 2007Co-Authors: Franz H. Heukamp, Heinrich Liechtenstein, Nick WalkelingAbstract:Venture capitalists in the German-speaking countries do not value the contribution of Business Angels in co-invested deals. Business Angels do not reduce the risk perceived by venture capitalists in early stage deals even if the Business Angels have what venture capitalists regard as an ideal profile. Venture capitalists also refute that deals with Business Angels typically generate higher internal rates of return than deals without Business Angels. The results of this study can be particularly important for the delicate transition process in the venture financing from Business Angels to venture capitalists.
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Do Business Angels alter the risk-return equation in early stage investments? Business Angels as seen by venture capitalists in the German speaking countries
2006Co-Authors: Franz H. Heukamp, Heinrich Liechtenstein, Nick WakelingAbstract:Venture capitalists in German-speaking countries do not value the contribution of Business Angels in co-invested deals. Business Angels do not reduce the risk perceived by venture capitalists in early-stage deals, even if the Business Angels have what venture capitalists regard as an ideal profile. Venture capitalists also refute that deals with Business Angels typically generate higher internal rates of return than deals without Business Angels.
Soumodip Sarkar - One of the best experts on this subject based on the ideXlab platform.
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financing innovative start ups in portuguese context what is the role of Business Angels networks
Journal of The Knowledge Economy, 2016Co-Authors: Jose Bilau, Soumodip SarkarAbstract:Business Angels provide both financing and managerial experience, which increase the likelihood of the survival of innovative start-ups. Over the last years, European countries with developing informal venture capital markets have seen governments support the creation of Business Angels networks (BANs) to increase and consolidate these markets. Using the Portuguese context to carry out the empirical work, this paper provides an assessment of value added provided by Angels’ networks. A total of 88 useable responses were received and analysed using non-parametric statistical techniques. This paper demonstrates that is evidence of positive contribution of BANs in terms of bringing together investors and linking them with entrepreneur’s seeking finance. BANs played an important role in financing innovative start-ups also in peripheral regions. Results lead us to conclude that government support BANs would appear to be an effective mechanism to stimulate the angel market in developing informal venture capital markets. The conclusions of this paper are likely to have relevance for countries where there is growing interest in the potential of Business Angels as a means of financing innovative start-ups.
Peter Klein - One of the best experts on this subject based on the ideXlab platform.
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Business Angels, Social Networks, and Radical Innovation
2016Co-Authors: Catherine Deffains-crapsky, Peter KleinAbstract:Innovation is critical for firm and national competitiveness. However, financing innovation is increasingly difficult for early-stage, high-risk projects, as banks and venture capital firms are focusing on later-stage, less risky projects. To fill this gap, US and European entrepreneurs are turning for seed funding to Business Angels (BAs) and Business Angel Networks (BANs). We describe the role of BAs and BANs in the US and Europe from the perspectives of entrepreneurship theory and social network theory. We show how BANs can strengthen ties between entrepreneurs and individual investors under highly uncertain conditions. We also study the links between formal and informal private equity finance, raising wider questions about the funding and performance of clusters of innovation. Finally, we suggest that differences in network characteristics, rather than the availability of projects, explain the large differences in the size and performance of the BA sectors in the US and Europe.
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Business Angels, Social Networks, and Radical Innovation
2016Co-Authors: Catherine Deffains-crapsky, Peter KleinAbstract:Innovation is critical for firm and national competitiveness. However, financing innovation is increasingly difficult for early-stage, high-risk projects, as banks and venture capital firms are focusing on later-stage, less risky projects. To fill this gap, US and European entrepreneurs are turning for seed funding to Business Angels (BAs) and Business Angel Networks (BANs). We describe the role of BAs and BANs in the US and Europe from the perspectives of entrepreneurship theory and social network theory. We show how BANs can strengthen ties between entrepreneurs and individual investors under highly uncertain conditions. We also study the links between formal and informal private equity finance, raising wider questions about the funding and performance of clusters of innovation. Finally, we suggest that differences in network characteristics, rather than the availability of projects, explain the large differences in the size and performance of the BA sectors in the US and Europe.
