IDEAS home Printed from https://ideas.repec.org/a/gam/jadmsc/v14y2024i10p247-d1492365.html
   My bibliography  Save this article

The Role of Business Angels in the Early-Stage Financing of Startups: A Systematic Literature Review

Author

Listed:
  • Jürgen Lange

    (Digital Office 24 GmbH, Bethmannstraße 8, 60311 Frankfurt am Main, Germany)

  • Stefan Rezepa

    (Apotheke am Mehringplatz, Mehringplatz 12, 10969 Berlin, Germany)

  • Monika Zatrochová

    (Institute of Management, Department of Management of Chemical and Food Technologies, Slovak University of Technology in Bratislava, Vazovova 5, 812 43 Bratislava, Slovakia)

Abstract

Funding is an essential factor for the viability and growth of startups. As a result, business angels play a crucial role in providing financial support to these business companies, particularly those that are innovative and have significant potential for growth. This study sought to determine the role business angels play in the early-stage financing of startups. Specifically, the study looked at the value-added services provided by business angels, business angel funding impact on startup survival rates, the effectiveness of business angel networks’ impact on facilitating startup funding, and business angels’ contribution to the development of entrepreneurial ecosystems beyond financial investment for startups. This study adopted a systematic literature review methodology, employing key theoretical methods such as analysis, synthesis, comparison, and induction to assess the role business angels play in the early-stage financing of startups. The findings show that business angels’ expertise, networks, and mentorship emerge as critical value-added startup services. Similarly, it was found that business angel funding positively influences startup survival; however, other factors also influence this impact. Moreover, the results show that business angel networks play a significant role in facilitating startup funding. Furthermore, beyond financial investment for startups, it was found that business angels contribute significantly to the development of entrepreneurial ecosystems, including prioritizing the contributions of ecosystem builders in startup screening, access to mentoring, and entrepreneurial education. The study concluded that business angels play a positive role in the early-stage financing of startups.

Suggested Citation

  • Jürgen Lange & Stefan Rezepa & Monika Zatrochová, 2024. "The Role of Business Angels in the Early-Stage Financing of Startups: A Systematic Literature Review," Administrative Sciences, MDPI, vol. 14(10), pages 1-21, October.
    • Handle: RePEc:gam:jadmsc:v:14:y:2024:i:10:p:247-:d:1492365
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2076-3387/14/10/247/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2076-3387/14/10/247/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Daniel Keogh & Daniel K.N. Johnson, 2021. "Survival of the funded: Econometric analysis of startup longevity and success," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 17(4), pages 29-49.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Dimitris Manolopoulos & Michail Xenakis & Panagiota Karvela, 2025. "Paving the Way to Success: Linking the Strategic Ecosystem of Entrepreneurial Start-Ups with Market Performance," Sustainability, MDPI, vol. 17(18), pages 1-25, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Nicola Sarto & Elisa Bocchialini & Lorenzo Gai & Federica Ielasi, 2025. "The influence of venture capital and university ownership on spin-off’s bank loan access: a synergistic effect," Small Business Economics, Springer, vol. 65(1), pages 427-449, June.
    2. Nestor Shpak & Solomiya Ohinok & Ihor Kulyniak & Włodzimierz Sroka & Yuriy Fedun & Romualdas Ginevičius & Joanna Cygler, 2022. "CO 2 Emissions and Macroeconomic Indicators: Analysis of the Most Polluted Regions in the World," Energies, MDPI, vol. 15(8), pages 1-22, April.
    3. Oleh Kolodiziev & Andrii Gukaliuk & Valeriia Shcherbak & Tetiana Riabovolyk & Ilona Androshchuk & Yaryna Pas, 2024. "The Impact of Refugee Startups on Host Country Economies: Business Models and Economic Adaptation," Economic Studies journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 175-201.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jadmsc:v:14:y:2024:i:10:p:247-:d:1492365. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.