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Network dynamics in business angel group investment decisions

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  • Butticè, Vincenzo
  • Croce, Annalisa
  • Ughetto, Elisa

Abstract

Investors within a Business Angel (BA) group are embedded in a cohesive network of relationships that arises from past joint investments. In this paper, we have studied how the network position of a BA within this network affects the likelihood that a company will receive investments from the BA group. We have hypothesized a curvilinear, inverse U-shaped relationship between the centrality of the BA and the probability of a company being funded by the BA group. Moreover, we have explored how the experience of a BA and the geographical proximity between the BA and the company influence such a relationship.

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  • Butticè, Vincenzo & Croce, Annalisa & Ughetto, Elisa, 2021. "Network dynamics in business angel group investment decisions," Journal of Corporate Finance, Elsevier, vol. 66(C).
  • Handle: RePEc:eee:corfin:v:66:y:2021:i:c:s092911992030256x
    DOI: 10.1016/j.jcorpfin.2020.101812
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