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Angel group members' decision process and rejection criteria: A longitudinal analysis

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  • Carpentier, Cécile
  • Suret, Jean-Marc

Abstract

This paper investigates business angel group members' decision-making from project submission to the final decision. Using a Canadian group's archival data on 636 proposals, we provide a detailed longitudinal analysis of the decision process. The rejection reasons generally refer to market and execution risk; this finding holds for every step of the process for proposals that pass the pre-screen. Angel group members focus more on market and execution risk than agency risk, similar to venture capitalists. Inexperienced entrepreneurs are rejected for market and product reasons. Decision-making by the studied angel group members differs from that generally described for independent angels.

Suggested Citation

  • Carpentier, Cécile & Suret, Jean-Marc, 2015. "Angel group members' decision process and rejection criteria: A longitudinal analysis," Journal of Business Venturing, Elsevier, vol. 30(6), pages 808-821.
    • Handle: RePEc:eee:jbvent:v:30:y:2015:i:6:p:808-821
    DOI: 10.1016/j.jbusvent.2015.04.002
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