Abstract
The recent explosion of the informal venture capital is stimulating finance
scholars to deeply investigate the major determinants, characteristics and
possible implications of this phenomenon within the start-up ecosystems.
The rising literature on business angels (BAs) still misses to adequately
cover many investigation areas, such as the operations and the role played
by the different typologies of BA networks (BANs) and the valuation of
the contributions provided by BAs to the performance of the angel-backed
companies. The contributions of Bonini et al. (2018, 2019) are part of
the ongoing debate on these two research areas that have not yet been
exhaustively explored. The two papers show that the affiliation to an angel
community affects BAs’ investment decisions, though it doesn’t seem to
have a significant impact on the survival and profitability of the funded
ventures. On the contrary, by co-investing in an angel syndicate, BAs may
enjoy risk- and information-sharing benefits that structurally affect both
their investment practices and the performance of the funded ventures.
Also, the BAs’ willingness to play an active role does have a positive impact
on angel-backed companies’ survival and growth. Finally, the intensity of
BAs’ soft monitoring seems negatively related to the performance of the
funded ventures because of the impact on the trust-based entrepreneur–
angel relationship. However, angel communities might be able to decrease
and distribute within the network the need for individual monitoring while
increasing members’ confidence in the angel investments.
Lingua originale | Inglese |
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Titolo della pubblicazione ospite | New Frontiers in Entrepreneurial Finance Research |
Editore | World Scientific Publishing Co Pte Ltd |
Pagine | 13-49 |
Numero di pagine | 37 |
ISBN (stampa) | 978-981-12-0275-9 |
DOI | |
Stato di pubblicazione | Pubblicato - 2019 |
Keywords
- Active involvement
- Angel Syndicate
- Business Angel
- Co-Investment
- Soft Monitoring