Abstract
This paper investigates the contribution provided by business angels' (BAs) post-investment intervention to the interaction between young entrepreneurial firms and bank lending decisions within the entrepreneurial finance ecosystem. The analysis relies on a data set comprising 114 Italian BA-backed firms over the 2010–2018 period, alongside 498 matched firms. We find evidence that BAs' support makes it easier for entrepreneurial firms to raise follow-on bank financing. Additionally, we document the positive effects of both BAs' entrepreneurial experience and soft monitoring. These effects can be attributed to BAs' value-added contributions and their role in mitigating information asymmetries perceived by debt providers.
| Original language | English |
|---|---|
| Pages (from-to) | 1217-1245 |
| Number of pages | 29 |
| Journal | European Financial Management |
| Volume | 31 |
| Issue number | 3 |
| DOIs | |
| Publication status | Published - Jun 2025 |
Keywords
- bank debt
- business angels
- entrepreneurial finance
- new firms
- value-added
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