Index
accredited investors 26, 40–41, 100, institutional measures and angel 224, 367, 383 activity 262 additionality 341, 346–7, 350 Argentina 11, 283, 286–90, 309, 313, adverse selection 373 314 bias 387 amount of investment (BANs) 310 agency theory 6, 78, 156 angel investors as percentage of total Andorra: number of Business Angel informal investors 284 Networks (BANs) 363 average investment (BANs) 310 angel–entrepreneur relationships: Business Angel Networks (BANs) conflicts 9–10, 15–16, 176–94 288 affect- and attitude-related outcomes development of angel investment 188–91 288–90 causes of conflict 181–4 economic and entrepreneurial consequences of conflicts 186–90 context 286–8 financial motives 176 entrepreneurial culture and deal future research agenda 190–94 opportunities 288, 309, 322 non-financial motives 176 gender composition (BANs) 311 performance-related outcomes geographical localization (BANs) 186–8 310 personal conflicts/differences 183–4 informal capital 286, 288 unethical behaviour 184–6 network characteristics 310–311 angels, types of number of members (BANs) 310 accredited, see accredited investors Programme for Business Incubators analytical 80 and Technological Parks and classical 86 Poles 287 dormant 30 Programme of Venture Capital entrepreneurial 79 for Science, Technology latent 30, 80 and Productive Innovation lotto 80 Enterprises (CREAR-CIT) 287 nascent 86 Promotion and Development of novice 86 Technological Innovation Law pure 85 286 seraphim 30 Venture Capital and Private Equity serial 79 Country Attractiveness Index smart 9, 15, 147–51 288, 323 sophisticated 40–41 attitude-related outcomes 10, 186, super, see super angels 188–90, 191 theatre 2 attitudes, behaviours and trader 80 characteristics (ABC) of angels virgin, see virgin angels 3–4 Angola 261, 263, 264, 274 China 202 estimated number of angel investors Africa 277 266 women angels 92, 97–8
399
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Australia 4, 31 Venture Capital and Private Equity angel investors as percentage of total Country Attractiveness Index informal investors 284 292, 322, 323 tax incentives 332 Bulgaria women angels 97 Business Angel Network (BAN) 359 Austria 65 number of Business Angel Networks number of Business Angel Networks (BANs) 363 (BANs) 363 Burkina Faso 264, 274 institutional measures and angel Belarus: number of Business Angel activity 262 Networks (BANs) 363 Business Angel Networks (BANs) 5–6, Belgium 12, 17–18, 31, 33, 43, 354–76 angel investors as percentage of total additionality 357, 369, 370, 374, 376 informal investors 284 adverse selection 373 Business Angel Networks (BANs) awareness of angel investing 371–2 370, 374 clubs 376 Vlaanderen Business Angel co-investment schemes 366 Networks (BANs) 358 communication channels 356, 360 Vlerick Business Angel Network company presentation events 366 360 competence 372 Bolivia 286 deal flow size 368 Bosnia: number of Business Angel deal-brokering platforms 375 Networks (BANs) 363 due diligence 366, 367 Botswana e-networks and Internet-based estimated number of angel investors investment 361, 366, 367 266 early stage preferred 358 Brazil 11, 266, 283, 285, 286, 291–5, educational programs/seminars and 308–9, 314, 315 venture forums 366, 369, 372 amount of investment (BANs) 310 entry barriers 357 angel investors as percentage of total equity aversion 372 informal investors 284 European funds 365 Business Angel Networks (BANs) facilitators 361 Initiative programmes 293 fees from entrepreneurs 365 characteristics of networks financing stage, preferred 358 310–311 for-profit orientation 358, 369–70, development of angel investment 376 293–4 formal angel alliances 361, 367 economic and entrepreneurial forums 355, 356, 369 context 291–3 functions 356–7 Financing Agency for Projects and future research 375–6 Studies (FINEP)(government geographical reach 359 agency) 291, 292–3, 309 impact, evaluation of 369–73 gender composition (BANs) 311 negative evidence 372–3 geographical localization (BANs) positive evidence 369–72 310 individual investors 361 sectors (BANs) 311 industry sector, preferred 358 Start-up Brazil (Ministry of Science, informal angel groups 361, 367 Technology and Innovation) institutional weaknesses 374 291 investment opportunities 373 type of BANs 311 investment readiness 356–7, 368–9
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investment syndication 356 National Angel Capital Organisation lead syndicate investors 356 7, 46 market maturity 376 New Media Venture Capital matching networks 355, 360, 361, program 342 366–7, 369 non-retail VC-funded firms membership fees (finance from) 365 (NRVCFs) (BC) 339, 342, 343, national or pan-national 359, 365 345, 347 newsletter/information bulletins 366 qualified corporations (QCs) not-for-profit investment 358 (Quebec) 340 parent organization finance 365 retail funds (BC) 339, 342 performance measurement 368–9 smart investing 156–7, 158 policy-makers, suggestions for 374–5 tax incentives 332, 341–2 portals 355, 360, 361 British Columbia 341–2, 344, 346, private sector funding 358, 365, 376 350 public sector funding 365, 369–70, British Columbia Venture Capital 374, 375, 376 Program 336, 339–40 regional or local funds 359, 365 Quebec Business Investment screening investment opportunities Company (QBIC) program 359, 371–3 336, 340, 343, 345 service performance 375 women angels 97 service-for-equity investments 356 Cape Verde 264, 274 services offered, range/types of 359 institutional measures and angel social capital 375–6 activity 262 socioeconomic effects 355, 371, 372 capital market depth 238 sponsorship 365 cash flow projections 131 subsidy per job 371 categorisations 8, 14, 76–90 success fees 357, 358, 365 Central and Eastern Europe 362–3 syndication practices 366, 369 Business Angel Networks (BANs) tax incentives 376 360, 374 training and coaching 357, 366, CEO involvement 164–5, 183 368–9, 371 Chile 11, 283, 295–300, 307, 308, 309, transaction costs 372 315, 316 transparency 370 amount of investment (BANs) 310 typological dimensions 357–60 angel investors as percentage of total value-added 376 informal investors 284 business plan review 126, 128–9 average investment (BANs) 310 Business Angel Networks (BANs) Cambodia 10 295 Canada 4, 34, 40–41 characteristics of networks 310–311 Angel Capital Association 48, 102 development of angel investment Atlantic Canada Opportunities 297–8 Agency (ACOA) 39–40 economic and entrepreneurial economic significance of angels 73 context 295–7 eligible business corporations formal venture capital 299 (EBCs)(BC) 339 gender composition (BANs) 311 Equity Capital Program (BC) 336 geographical localization (BANs) Governmental Equity Capital 310 Program (BC) 339 Innova Chile programme 297 investment decision-making 124–5, Investment Funds Law 296 126, 133 macroeconomic indicators 321
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number of members (BANs) 310 individual angels 210 origin and main support (BANs) 310 institutional angel investors 210 sectors (BANs) 311 investment amounts 213 Support for the Creation of BANS investment decision-making 122 297 investment size 212, 213 type of BANs 311 investment strategy 212–13, 214 Venture Capital and Private Equity investment style 213–14 Country Attractiveness Index market size 209–210 296, 322, 323 matching funds for startups 226–7 Venture Forum 313 matchmaking services 201 China 10, 11, 16, 201–231, 240, 277 member-organized angel club 214 accreditation/certification 224 millionaire club 203 angel investment fund for Hi-tech networks 227 Zone (Hefei) 225 non-profit associations 219 angel investment government-led origin of investment market 208–9 fund (Ningbo) 225 platform-based venture capital 211 angel investment government-led post-investment activities 214 fund (Qingdao) 225 public seed and venture funds angel investment government-led 220–22 fund (Yangzhou) 226 regional differences in investment angel investment market information 211 from existing research 205, regional policy for innovation and 206–7 entrepreneurship 222 attitudes, behaviours and special angel groups 214–19 characteristics (ABC) 202 super angel fund 214–17 Business Angel Association (CBAA) tax incentives 222, 227 208, 218, 221 well-known investors 215 Business Angel Networks (BANs) clubs 376 209 China 201, 209, 210 change trend of investment fund- Mexico 306 raising 217 Southeast Asia 252 Chinese Returnees 209 co-investment 29, 30, 32, 117 clubs 201, 209, 210 Business Angel Networks (BANs) co-investment 211, 226 366 deals, number of 212 China 211, 226 development and characteristics crowdinvesting (crowdfunding) 208–211 391–2 direct investment fund 226 Singapore 240 e-networks and Internet-based smart investing 167, 168, 169 investment 211, 217 Southeast Asia 251 education of investors 228 Thailand 244 financing policies, targeting 223–8 Vietnam 247 for-profit networks 217–19 collectivism 261–2, 263, 272, 279 funds 201, 204, 209, 215 Colombia 11, 283, 298, 300–304, 307, future research 228–30 309, 313 government policies promoting amount of investment (BANs) 310 investment 217, 219–28 angel investors as percentage of total groups 204, 209, 210 informal investors 284 incubator-based angel investment average investment (BANs) 310 210–211, 217 characteristics of networks 310–311
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depth of capital markets 309 core–periphery basis 31 development of angel investment corporate angels 80 301–3 corruption 236, 260, 261, 274 economic and entrepreneurial cost–benefit approach 346–7 context 300–301 Croatia entrepreneurial culture and deal number of Business Angel Networks opportunities 301, 309, 322 (BANs) 363 gender composition (BANs) 311 cross-border investing 271 general innovativeness and capacity crowdinvesting (crowdfunding) 12–13, for innovation 301 18, 32, 72, 90, 117, 140, 381–95 geographical localization 310 adverse selection bias 387 investor protection and corporate anti-dilution 386 governance 309 boilerplate contracts 392 macroeconomic indicators 321 co-investment 391–2 number of investments (BANs) comparison with angel investing 13, 310 386–91 number of members (BANs) 310 contracts 384, 392, 394 origin and main support (BANs) decision-making 117, 140 310 due diligence 390 sectors (BANs) 311 entry barriers 385 taxation 309 financial operation 383–6 type of BANs 311 future research 393–4 Columbus, Christopher 2 gatekeepers 387 commercial returns, see for-profit groupthink 389 networks/ventures high net worth individual 385 communications 193 initial public offering (IPO) 390–91 channels 356, 360 liquidation preferences 386 reactive/none/proactive/explicit 183 minimum investment tickets 384, compensatory factors 119, 123, 131 385, 394 competence 80, 372 non-disclosure agreement (NDA) competition over scarce resources 387 (power/wealth) 183 platforms, structure of 394 competition, unfair 184–5 pooling of the crowd 394 competitive conflict management style portals 384–5, 387 191–2 securities regulation 382–3, 392 confirmation bias 118 success fees 384 conflicts, see angel–entrepreneur tag-along and drag-long rights 386 relationships: conflicts transactions, structure of 384 consummation stage 126, 134–5 wisdom of the crowds 389 contextual factors 151, 192 cultural factors 11, 17, 26, 122, 139, contract 176 169 boilerplate 392 customer engagement 130 clauses 135 Cyprus complete 85 number of Business Angel Networks control clauses 135, 137 (BANs) 363 crowdinvesting (crowdfunding) 384, Czech Republic: number of Business 392, 394 Angel Networks (BANs) 363 theory 84 cooperative conflict management styles deal origination 84, 126, 128 191–2 debt and equity finance 382
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decision effort 129 indicators, strengths and weaknesses demand perspective indicators 62, of 63–6, 69–70 66–8, 70 indicators, use of to guide policy demand-side view 89 71–2 Denmark investment per number of growth- angel investors as percentage of total oriented new ventures 68 informal investors 284 investment, scope of 64, 68 Business Angel Network 371 policy, relevance for 70–72 investment decision-making 122 SME stock 67–8 number of Business Angel Networks supply perspective indicators 62–3 (BANs) 363 total capital flow to SMEs 64 direct investment 28 value-adding activities and quality discontinuity of networks 315–16 of firms 53–4 displacement effects 346–7 Ecuador 307 dominant elite coalitions 275 education of investors 139, 228, 355, double bottom line investing 257–8, 366, 369, 372; see also training of 271, 272 investors and entrepreneurs double trust dilemma of innovation entrepreneur culture and deal 388 opportunities 238 Dragon’s Den/Shark Tank 116–17, 120, entrepreneurial eco-system, 123, 128, 139 strengthening 54 due diligence 84, 86, 133–4, 138, 354 entrepreneurial learning phase 86 Business Angel Networks (BANs) entry barriers 357, 385 366, 367 equity aversion 372 crowdinvesting (crowdfunding) 390 equity flow 64 investment decision-making 121, Equity Investment Scheme (EIS) 336, 126, 128, 135 347, 349 women angels 102 Estonia 360 ESTBAN 359, 362–3, 374 e-networks and Internet-based number of Business Angel Networks investment 361, 366, 367 (BANs) 363 China 211, 217 Ethiopia 261, 263, 264, 274 sub-Saharan Africa 268, 269 estimated number of angel investors East Africa 272–3 266 economic indicators 235 institutional measures and angel economic significance of business activity 262 angels ethnicity 139 activities, scope of 55–61 Europe 5, 278 angel investment per number of business incubators initiative 371 SMEs 68 crowdinvesting (crowdfunding) 383, angel’s share of total capital and 385, 387, 395 equity flow to SMEs 64 investment bulletins and investment comparable indicators 7, 14, 53–73 forums 367 entrepreneurial eco-system 54 tax incentives 376 equity flow 64 see also European Business Angel financial capital 53 Networks (EBANs) funding, contribution to venture’s European Business Angel Networks ability to attract 53 (EBANs) 355–6, 357, 360–66, 374, future research 72 375 growth-oriented new ventures 68 number of (1999–2013) 362
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number as percentage of number of founder angels 6, 38, 85 business angels 364 France 4 number in specific countries 363 angel investors as percentage of total portals 361 informal investors 284 services for members 366 Business Angel Networks (BANs) ‘Women and European early stage 362 investing’ white paper (2010) 95 economic significance of angels 55, European Venture Capital Association 57, 59–60, 62–3, 64, 67–8, 70 (EVCA) 62, 66 number of Business Angel Networks evaluation stage 126 (BANs) 363 exit 6, 135–7, 189–90 tax incentives 332, 336, 337, 345 crowdinvesting (crowdfunding) women angels 95, 96 390–91 fraud 185 investment decision-making 141 friends and neighbours 36, 37, 40; see plans 126–7 also love money (family members preferences 84, 90 and friends) strategies 121 funding 30, 365 tax incentives 345, 348 China 201, 204, 209, 215 experience, importance of 86, 87, 121, contribution to venture’s ability to 130, 131, 168 attract 53
facilitated interaction 122–3 gatekeepers 387 facilitators 268 gender discrimination 107 family investment, see love money gender diversity 108 (family members and friends) gender-related differences 100–102 fatal flaw and rejection 129–30 geographical contexts studied 154, 156, financial capital, increased supply of 157 53 Germany 4 financial criteria 124 angel investors as percentage of total financial forecasts 130 informal investors 284 financial risk 131 angel–entrepreneur relationships and Finland 34, 36 conflicts 178 angel investors as percentage of total Business Angel Networks (BANs) informal investors 284 360, 362 Business Angel Network (FiBAN) crowdinvesting (crowdfunding) 392, 358, 359, 362, 363 395 number of Business Angel Networks economic significance of angels 65 (BANs) 363 investment decision-making 122, smart investing 156–7, 159 125 tax incentives 332 number of Business Angel Networks women angels 97 (BANs) 363 for-profit networks/ventures 28, 80, smart investing 156–7, 159 217–19, 358, 369–70, 376 women angels 95, 97 formal involvement 135, 160, 360, 361, Ghana 264, 269, 273, 274 367 Angel Investors Network (formal Argentina 286 alliance) 271 Chile 299 estimated number of angel investors sub-Saharan Africa 261–4, 268, 272, 266 274, 278, 279 institutional measures and angel forums 355, 356, 366, 369, 372 activity 262
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population percentage who have Iceland: number of Business Angel provided funds 265 Networks (BANs) 363 predicted levels of investing identification: sampling strategies activity based on institutional review 33–46 conditions 263 visible market: angel networks and Global Business Angel Monitor 89 groups 43–6 Global Entrepreneurship Monitor see also invisible market (GEM) 13, 35–6, 37, 47, 67, 70, impact investing 151, 257 73 importance of business angels 1–2 definitional confusion 7, 27 in-principle commitment of funds 30 global financial crisis 6, 45, 59, 65 inactive investors 80 goal incompatibility 182 incomplete contracts approach 373 government initiatives and support 5, incubator-based angel investment 87, 18, 117, 122, 141 210–211, 217 Brazil 291, 292–3, 309 India 240 Canada 339 women angels 103 China 201, 225, 226 indicators, strengths and weaknesses Ghana 271 of 69–70 sub-Saharan Africa 260, 273–4, 278 individual affect outcomes 10, 186 women angels 108 individual investors 361 Greece individual investors, collections of 268 angel investors as percentage of total individualism 274, 279 informal investors 284 Indonesia 10, 233, 234, 237, 249–50, number of Business Angel Networks 251, 252, 253 (BANs) 363 business angel challenges 250 gross regional product (GRP) 61 Business Angel Networks (BANs) groups 33, 43–6, 361, 367, 376 profile and fund performance China 204, 209, 210 250 women business angels 103–5 economic indicators 235 Guatemala 285 institutional analysis 236 angel investors as percentage of total industry knowledge 128 informal investors 284 informal institutions 261–6 informal investment 7, 26–7, 40, 47, hands-off investment 32 360, 361, 367 hands-on investment 29, 161, 163–4, Business Angel Networks (BANs) 167 284 descriptive overview 154–8 categorisations 77, 79 theoretical approach 156 decision-making 135 theories used and geographical economic significance: comparable contexts studied 154, 156, 157 indicators 72 hedonism investment motivation 78 smart investment 160 heuristics 116, 120, 129 tax incentives 329 high net worth individual (HNWI) information asymmetry and funding crowdinvesting (crowdfunding) 385 risk 389–90 Latin America 282, 314, 316 information value 64–6, 69 Mexico 308 initial public offerings (IPOs) 345, women angels 100, 103, 107, 108 390–91 high-tech companies 225–7, 338–9, 370 initial screening 126, 128–9 homophily 100–101, 102 institutional (country-level) differences Hungary: Huban 359 168
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institutional settings 26 post-investment management 128, institutional voids and investing 235–7 135 insufficient investment return and practice and policy implications rejection 130–31 137–8 international cooperation 89 product 124 international dimensions 10–11 product adoption 129–30, 131 Internet-based investment, see protectability 130, 131 e-networks and Internet-based referrals 128 investment rejections 128–9 intragroup conflict 179, 191, 192 relationship risk 129 investment selection 129 activity 79, 80 sequential elimination process 116, career phase 86 129 process 8–10 stages of process 126–35 scope 64 deal origination 128 syndication 356 due diligence 128, 133–4 see also investment decision-making initial screening and business plan investment decision-making 9, 14–15, review 128–9 46, 85–6, 115–41 negotiation and consummation adaptive approach 116 134–5 cash flow projections 131 rejection due to excessive crowdinvesting (crowdfunding) 117, managerial risk 131–2 140 rejection due to excessive decision effort 129 relationship risk 132–3 decision shortcuts (heuristics) 116 rejection due to fatal flaw 129–30 entrepreneur 124 rejection due to insufficient entrepreneur experience 130, 131 investment return or exit 135–7 excessive venture risk financial criteria 124 130–31 financial forecasts 130 selection (evaluation) stage 129 financial risk 131 supply chain issues 131 future research 138–41 technology risk 131 heuristics framework 129 time to market 130 importance of understanding viable route to market 130 investment decision process women business angels 124, 139 115–17 investor protection and corporate industry knowledge 128 governance 238 investment factors considered investor–investee information stream 123–5 182 lead time to market 131 invisible market 33–43, 233 location factors 128 firm surveys 41–2 managerial assessment 129 investment data 42–3 market 124 mailing lists 34–5 market potential 129, 131 population surveys 35–8 market risk 131 snowball sampling 33–4 motivations and characteristics targeted population sub-groups 120–23 38–41 operational risk 131 involvement 84, 158–62, 168, 169–70 positive and negative factors active 29, 85, 160, 176 considered 124–5 passive 160, 359
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Ireland fiscal incentives 314 angel investors as percentage of total future research 313–17 informal investors 284 geographic scope of networks 313 number of Business Angel Networks high net worth individual (HNWI) (BANs) 363 282, 314, 316 tax incentives 376 institutional framework 314 Isabella of Spain, Queen 2 institutional stability 315 Italy investors as percentage of total number of Business Angel Networks informal investors 284 (BANs) 363 Mexico, see Mexico tax incentives 332 overview of markets 283–6 women angels 95 similarities and differences of angel investment 308–313 Japan 4 training of investors and smart investing 156–7, 159 entrepreneurs 315 women angels 97 Venture Capital and Private Equity job creation 176, 328, 371 Country Attractiveness Index 308, 323 Kenya 264, 269–70, 272, 273, 274 Latvia 360 institutional measures and angel number of Business Angel Networks activity 262 (BANs) 363 predicted levels of investing lead syndicate investors 356 activity based on institutional lead time to market 131 conditions 263 liquidation preferences 386 KickStarter 140 Lithuania: number of Business Angel Networks (BANs) as percentage latent conditions 190–91 of number of business angels latent conflict 181 364 Latin America 11, 16–17, 282–317, location factors 128; see also proximity 321–3 (geographical closeness) activity of networks in selected love money (family members and countries 312–13 friends) 1, 7, 27, 29, 36, 37, 40 Argentina, see Argentina Luxembourg Brazil, see Brazil number of Business Angel Networks Business Angel Networks (BANs) (BANs) 363 282, 285 tax incentives 376 Business Angels Association 285 characteristics of networks in Macedonia specific countries 310–311 Business Angels Network 358 Chile, see Chile number of Business Angel Networks Colombia, see Colombia (BANs) 363 continuity and coordination of macro-level (country and regional) public policies and programmes contingencies 168, 170 314–15 macroeconomic effects 346–7 cultural aspects 314, 316 macroeconomic indicators 321 discontinuity of networks 315–16 Malawi 264, 274 entrepreneurial culture and deal estimated number of angel investors opportunities dimension 322 266 evolution of investment in countries institutional measures and angel studied 309–313 activity 262
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population percentage who have origin and main support (BANs) 310 provided funds 265 sectors (BANs) 311 Malaysia 10, 240 taxation 309 Angel Tax Incentive 349 type of BANs 311 Business Angel Network 349 micro-level (individual or firm) tax incentives 330, 332 contingencies 168–9, 170 Malta: number of Business Angel minimum investment tickets 384, 385, Networks (BANs) 363 394 managed angel groups 13, 31, 43–4 minority shareholders’ protection 236 managerial assessment 129 monitoring of investments 84, 160–61, managerial involvement 183 354 managerial risk 130, 131–2, 133 motivations, characteristics and market investment decision context characteristics 7–8 120–23 maturity 376 Mozambique 264, 274 operation 268–71 institutional measures and angel potential 129, 131 activity 262 risk 131 multi-stage model 126 scale 3–4 multi-stage sequential elimination scope of and impact on economy 7 process 116, 120 size and evolution 264–8 matching networks 268, 355, 360, 361, Namibia 264, 274 366–7, 369 estimated number of angel investors media, partnerships with 108 266 membership fees (finance from) 365 institutional measures and angel mentoring role 160–61 activity 262 Mexico 11, 283, 298, 304–8, 309, 313 negative impact on assessment of amount of investment (BANs) 310 venture 123–4 angel investors as percentage of total negotiation stage 6, 126, 134–5 informal investors 284 Netherlands average investment (BANs) 310 angel investors as percentage of total Business Angel Networks (BANs) informal investors 284 306 Informal Investors Network 358 characteristics of networks 310–311 number of Business Angel Networks clubs 306 (BANs) 363 depth of capital markets 309 tax incentives 335 development of angel investment women angels 95 306–7 networks 43–6, 386 economic and entrepreneurial China 227 context 304–6 Singapore 239, 240 entrepreneurial culture and deal Thailand 246 opportunities 305, 309, 322 see also Business Angel Networks gender composition (BANs) 311 (BANs); social networks high net worth individual (HNWI) new technology-based firms (NTBF) 308 328, 331 investor protection and corporate New Zealand 36 governance 309 newsletters/information bulletins 366 macroeconomic indicators 321 Nigeria 261, 264, 269, 273, 274, 278 number of active BANs 310 estimated number of angel investors number of investments (BANs) 310 266
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institutional measures and angel personal satisfaction as investment activity 262 motive 176 Lagos Angel Network (LAN)(formal Peru 284, 285, 298, 307 alliance) 270–71 Philippines 10, 11, 233, 234, 237, non-compensatory factors 119, 121, 240–43, 252, 253 123, 131 business angel challenges 242 non-disclosure agreement (NDA) 387 business angel profile and fund non-financial motives, see not-for- performance 241 profit motives/contributions economic indicators 235 non-governmental organisations private equity attractiveness index (NGOs) 210 238 North Africa 264 Poland Norway 4, 34 angel investors as percentage of total angel investors as percentage of total informal investors 284 informal investors 284 number of Business Angel Networks Business Angel Networks (BANs) (BANs) 363 362 women angels 95 economic significance of angels 55, portals 355 60, 62–3, 64, 67–8, 70, 73 Business Angel Networks (BANs) number of Business Angel Networks 355, 360, 361 (BANs) 363 crowdinvesting (crowdfunding) smart investing 156–7, 159, 167 384–5, 387 women angels 97 Europe 361 not-for-profit motives/contributions South Africa 270 83, 176, 219, 358 sub-Saharan Africa 268–71 number of investments 84 portfolio theory 156 portfolio ventures, frequency and operational risk 131 forms of contacts with 160–61 opportunity-based investment 40, 265 Portugal Organisation for Economic Co- angel investors as percentage of total operation and Development informal investors 284 (OECD) countries 66, 70, 73 number of Business Angel Networks Organisation for Economic Co- (BANs) 363 operation and Development tax incentives 330, 332 (OECD) Financing SMEs and positive impact on assessment of Entrepreneurs Scoreboard for venture 123–4 loan financing 62, 67 post-investment involvement 166, 167, overt conflict 181 176, 179, 192–3 decision-making 121, 126, 128, 135 Panama 284, 285 due diligence 85 parent organization finance 365 power, abuse of 185 passive involvement 160, 359 pre-investment involvement 85 people-centred (soft) activities 163, 165 principal agent approach 84 performance measurement 368–9 private equity 258 performance of venture, potential private sector funding 358, 365, 376 benefits offered into venture private unquoted companies, investing operations impacting on 162–5, in 28 170 process-oriented conceptualization 170 performance-related outcomes 10, product adoption 129–30, 131 186–8, 191 product novelty 168
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professionalism, lack of 240 risk aversion 314 professionally safeguarded investments risk provisions 227 84 risk subsidies 226–7 property rights protection 236 risk–return ratio 12 protectability 130, 131 Romania proximity (geographical closeness) 89, number of Business Angel Networks 166, 168, 359 (BANs) 363 psychic income 78 rule of law 260–61, 274 psychological motivations 121 Russia public sector funding 365, 369–70, 374, angel investors as percentage of total 375, 376 informal investors 284 Business Angel Networks (BANs) qualitative (expertise-based) analysis 374 157–8, 166, 202 number of Business Angel Networks quantitative (statistical) analysis 157–8, (BANs) 363 190, 370–71 samples of convenience 25, 33, 48 referrals 128 satisficing heuristic 131 regional/local funds 359, 365 schools of entrepreneurship regulative institutions (formal) 259–60 (Schumpeterian and Austrian) 84 regulatory quality measure 260, 274 scope of activities 55–61 rejections 128–9, 130–33 contemporary studies 58–60 relational investing, see love money early attempts at measurement (family members and friends) 56–8 relationship conflicts 178–80, 188, 192 Scotland 65 relationship performance 163 co-investment fund 87 relationship risk and rejection 126, 129, Local Investment Networking 130, 132–3, 134 Company (LINC) 59, 363 research: definitional and data risk capital market 42 challenges 7, 13, 25–48 screening investment opportunities definitional issues 26–33 359, 371–3 accredited investors 26 second equity gap 370 active investors 29 second generation gender bias 107 co-investors 29, 32 securities legislation/regulation 40, crowdinvesting (crowdfunding) 32 382–4, 392 dormant angels 30 segmentation 77–8 hands-off investor 32 selection bias 122–3 hands-on investors 29 selection (evaluation) stage 84, 126, informal investors 26–7 127–8, 129 latent investors 30 Senegal 264, 274 ‘love money’ (family members and institutional measures and angel friends) 27, 29 activity 262 managed angel groups 31 sense-making (naming and blaming) super-angels 31 181 ‘virgin’ angels 29–30 sequential elimination process 116, see also identification: sampling 120, 129 strategies review Serbia research: future directions 13–18 Business Angel Networks (BANs) research field evolution 2–6 363 resource acquisition role 160–61 Business Angels 358
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number of Business Angel Networks institutional measures and angel (BANs) 363 activity 262 serial investors 79 population percentage who have shareholder agreement 134 provided funds 265 Shark Tank/Dragon’s Den 116–17, 120, portals 270 123, 128, 139 super angels 267–8 Sierra Leone 261, 264, 269, 273, 274 Venture Capital and Private Equity institutional measures and angel Association 267 activity 262 Southeast Asia 10–11, 16, 233–54, 277 Singapore 36, 234, 237, 239–40, 251, Business Angel Network of 252, 253 Southeast Asia (BANSEA) business angel characteristics 239 240 Business Angel Networks (BANs) Business Angel Networks (BANs) 239 252, 253 co-investment 240 business corruption 236 economic indicators 235 capital market depth 238 family networking 239 clubs 252 professionalism, lack of 240 co-investment 251 social networks 239, 240 due diligence 251, 253 tax incentives 330, 332 economic activity 238 women angels 97 entrepreneur culture and deal situational contingencies 170 opportunities 238 size distribution of investments 31 future research 253–4 Slovenia: number of Business Angel informal economy 233 Networks (BANs) 363 institutional analysis 236 small and medium-sized enterprises institutional voids and investing (SMEs) 8, 53, 243 235–7 share of total capital and equity flow investor protection and corporate 64 governance 238 stock 67–8 invisible investors 233 smart capital 86–7 minority shareholders’ protection smart investors 9, 15, 147–71 236 thematic analysis 153, 158–69 private equity attractiveness index value-added 148–51 238 see also hands-on involvement: property rights protection 236 descriptive overview stock market 236 social capital 375–6 taxation 238 and networking 246 Spain theory 6, 85 angel investors as percentage of total social networks 239, 240, 276 informal investors 284 socially motivated investors 28 Business Angel Networks (BANs) socioeconomic effects 355, 371, 372 362 sophisticated investors 40–41; see also number of Business Angel Networks accredited investors (BANs) 363 sounding board/strategic role 160–61 women angels 95 South Africa 264, 265, 267–8, 269, 272, ‘spray and pray’ game 272 273, 274, 278 stages of investing 84 estimated number of angel investors stock market 236 266 strategic acquisitions 136, 141 informal investors 267–8 strategic involvement 183
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sub-Saharan Africa 11, 16, 256–79 similarity/differences to Anglo- attitudes, behaviours and American angels 272–3 characteristics (ABC) 277 social networks 276 collectivism 261–2, 263, 272, 279 ‘spray and pray’ game 272 corruption control 260, 261, 274 trust 277–8 cross-border investing 271 uncertainty avoidance 261–2, 263, crowdinvesting (crowdfunding) 269 272, 274 cultural-cognitive institutions venture capital, application of (informal) 259 findings from to angel investing dominant elite coalitions 275 258, 260–63 double bottom line investing 257–8, venture philanthropy 257 271, 272 voice and accountability 260, 274 e-networks and Internet-based see also South Africa investing 268, 269 subjective value 162–3, 164, 170 evidence of angel activity 262 success fees 357, 358, 365, 384 facilitators 268 super angels 6, 31, 38, 86, 264 family connections/investing 258, China 214–17 276 South Africa 267–8 formal institutions/alliances 261–4, supervision role 160–61 268, 272, 274, 278, 279 supply chain issues 131 government effectiveness 260 supply perspective 61–3, 70, 88 government policy and support Sweden 4, 37–8, 68 273–4, 278 angel investors as percentage of total impact investing 257 informal investors 284 individual investors, collections of categorisations 77, 82, 88 268 number of Business Angel Networks individualism 274, 279 (BANs) 363 informal institutions 261–2, 263, smart investing 156–7, 158, 159, 162, 264, 265–6 163, 167 informal investing 258–9, 265–7, 268, tax incentives 335 271, 274, 276, 278, 279 women angels 97 institutional context of investing Switzerland 259–64 angel investors as percentage of total investing activity based on informal investors 284 institutional conditions, c-crowd 395 predicted levels of 263 number of Business Angel Networks investors, estimated number of 266 (BANs) 363 market operation 268–71 syndicates/syndication 59, 366, 369 market size and evolution 264–8 matching networks 268 tag-along and drag-long rights 386 political stability and reductions in Tanzania 264, 273, 274 violence 11, 260, 274 institutional measures and angel population providing funds for new activity 262 business, percentage of 265 target firms/investors 330 portals 268–71 task conflicts 178–80, 183, 187, 190–91, private equity 258 192 regulative institutions (formal) task-centred (hard) activities 163, 165 259–60 tax incentives 12, 17, 327–50, 376 research agenda 275–8 abuse 335 rule of law 260–61, 274 back-end incentives 329
Hans Landström and Colin Mason - 9781783471720 Downloaded from Elgar Online at 09/28/2021 04:34:25AM via free access
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distribution of tax credit programs investment environment 243 by eligible investors and firms investment strategy 243 332–3 long-term investment 244 effectiveness 340–47 private equity attractiveness index eligibility rules 335, 345 238 employment 343–4 small and medium-sized enterprises encouraging taxpayers to invest (SMEs) 243 capital in businesses that are in social capital and networking 246 early stages of development 331 thematic analysis 158–69 Equity Investment Scheme (EIS) involvement and value added 158–62 336, 342–3, 344 value added: situational equity supply, effect on 341–2 contingencies influencing 165–9 expected outcomes 331–5 value added: translation and impact firm-level effect 342–6 162–5 fostering economic growth 331 time input 6, 166 France 337 time to market 130 front-end incentives 12, 329–30, 333, time-to-exit strategies 176–7 334 training of investors and entrepreneurs incentive programs: objective and 357, 366, 368–9, 371 characteristics 328–31 Latin America 315 rationale 328–9 women angels 105, 107, 108 types of incentives 329–30 transaction costs 372 initial public offerings (IPOs) 345 trust 5, 11, 126, 133, 140, 193 loss insurance programmes 329 double trust dilemma of innovation macroeconomic effects 346–7 388 operational and financial Latin America 316 performance of financed firms Southeast Asia 236 344–6 sub-Saharan Africa 277–8 potential drawbacks 334–5 Turkey preferential fiscal treatment of losses number of Business Angel Networks 329 (BANs) 363 preferential tax rate 329 rollover provision 329 Uganda 267, 269 superposition effect 331 estimated number of angel investors tax credit 329 266 women angels 108 population percentage who have see also Canada; United States provided funds 265 technology risk 131 Ukraine technology-based investments 84, Business Angel Network (UBAN) 167, 168, 373; see also high-tech 359, 363 companies number of Business Angel Networks Thailand 10, 11, 233–4, 237, 239–40, (BANs) 363 243–6, 252–4 uncertainty avoidance 261–2, 263, 272, business angel profile and fund 274 performance 244 unethical behaviour 184–6 co-investment 244 United Arab Emirates: women angels due diligence 246 94 economic indicators 235 United Kingdom 4, 5, 37, 237, 257, family investment 244, 251, 254 272, 273, 278 fund performance 243 angel investors as percentage of total
Hans Landström and Colin Mason - 9781783471720 Downloaded from Elgar Online at 09/28/2021 04:34:25AM via free access
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informal investors 284 Rule 506 Regulation D (safe harbor) angel–entrepreneur relationships and 387 conflicts 178 Securities Act (1933) 382, 387, 395 Business Angel Association Securities Exchange Act (SEC) 367, (UKBAA) 45, 59, 364 382, 387 Business Angel Networks (BANs) Securities and Exchange 43–4, 360, 362, 363, 368, 369–70 Commission (SEC) 100, 382–3, Business Expansion Scheme (BES) 385 27, 335 Seed Enterprise Investment Scheme BVCA 46 (SEIS) 350 crowdinvesting (crowdfunding) 395 Silicon Valley 98, 308 economic indicators 234–5 Small Business Administration economic significance of angels 55, (SBA) 41 57, 59, 60, 62, 64, 67–8, 70 smart investing 156–7, 158, 163, 167 Enterprise Investment Scheme (EIS) tax incentives 328–9, 332, 376 27, 335 Hawaii 346, 347 investment decision-making 122, Hawaii High Technology Business 124–5 Investment Tax Credit 338–9 National Business Angel Network Illinois 341 (NBAN) 44, 45 Illinois Angel Tax Credit 338 number of Business Angel Networks Louisiana 330 (BANs) 363 Louisiana incentives 350 smart investing 156–7, 158, 162–3, Michigan 330 167 Minnesota 341, 350 tax incentives 332, 341, 345, 349, Minnesota Angel Tax Credit 350, 376 337–8 Venture Capital Association 45 Nebraska 349 women angels 94, 95, 97, 98–9, 103 Wisconsin 330, 350 United States 2, 4, 28, 36, 46, 237, 257, Wisconsin Angel Tax Credit 331 272, 278 Venture Capital Network (VCN) Angel Capital Association 48, 102, 44–5, 366 367 Venture Capital and Private Equity angel investors as percentage of total Country Attractiveness Index informal investors 284 238 angel–entrepreneur relationships and Venture Fund Credits (WEDC) 331 conflicts 179 women angels 8, 95, 96, 97, 103 Business Angel Networks (BANs) Uruguay 355–6, 360, 366–7, 371 angel investors as percentage of total crowdinvesting (crowdfunding) 32, informal investors 284 386 economic significance of angels valuation of firm 134 55–7, 60, 62–4, 67–8, 70, 73 value-added 9, 53–4, 84, 148–51, Enterprise Investment Scheme (EIS) 158–62, 177 329–30 Business Angel Networks (BANs) investment decision-making 122, 376 124–5 and quality of firms 53–4 qualified high-tech business (QHTB) situational contingencies influencing (Hawaii) 336, 338–9 165–9 qualified new business venture smart investors 148–51, 152 (QNBV)(Illinois) 338 translation and impact 162–5
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values and beliefs 184 co-investment 247 Venezuela institutional analysis 236 angel investors as percentage of total ‘virgin’ angels 29–30, 80, 328, 372 informal investors 284 visible market: angel networks and venture accelerator programmes 87 groups 13, 43–6, 59 Venture Capital: An International Journal of Entrepreneurial Finance wealth-maximising angels 79 5, 154, 155 women business angels 6, 8, 14, 38, 44, venture capital activity 258, 260–63, 92–108 292 country specifics 93–7 Venture Capital and Private Equity future research opportunities 105–8 Country Attractiveness Index groups, increase in 103–5 Argentina 288, 309, 323 high net worth women, increase in Brazil 292, 322, 323 103 Chile 296, 322, 323 investment decision-making 124, 139 Colombia 301, 309, 322, 323 profiles of female angel investors 99 Latin America 308, 322, 323 public policy implications 108 Mexico 304, 305, 309, 322, 323 training 105, 107, 108 Philippines 238 trends, challenges and opportunities Singapore 237, 238 103–5 Southeast Asia 238 types of investment and differences Thailand 238 to male investors 97–102 United Kingdom 238 Women’s Angel Investor Network United States 238 (United Arab Emirates) 104 Vietnam 238 venture philanthropy 257 Zambia 264, 273, 274 venture risk 130–33 estimated number of angel investors Vietnam 10, 233, 234, 237, 246–9, 252 266 business angel challenges 248 institutional measures and angel business angel profile and fund activity 262 performance 247 Zimbabwe 269
Hans Landström and Colin Mason - 9781783471720 Downloaded from Elgar Online at 09/28/2021 04:34:25AM via free access
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