The Returns from Informal Venture Capital Investments: An Exploratory Study
Despite the recent increase in research on informal venture capital there are many aspects of this market for which no information exists. One such issue is exits. This exploratory study is the first to address this issue. It is based on a survey of 38 active business angels in Finland who had made a total of 155 investments; 20 of these investors had made 49 exits. Two aspects are addressed. First, evidence is presented on investment performance and the timing and method of exit. Second, the paper explores differences between those investors with a successful track-record of exits and those with an unsuccessful track-record. Differences are identified in terms of motivations for investing, volume and sources of information on investment opportunities, prior relationship with investee businesses, perception of value-added and employment background. However, conclusions should only be regarded as suggestive in view of the small numbers involved.
Volume (Year): 5 (1996)
Issue (Month): 2 (Summer)
|Contact details of provider:|| Postal: |
Web page: http://bschool.pepperdine.edu/jef
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sapienza, Harry J., 1992. "When do venture capitalists add value?," Journal of Business Venturing, Elsevier, vol. 7(1), pages 9-27, January.
- Harrison, Richard T. & Mason, Colin M., 1992. "International perspectives on the supply of informal venture capital," Journal of Business Venturing, Elsevier, vol. 7(6), pages 459-475, November.
- Gorman, Michael & Sahlman, William A., 1989. "What do venture capitalists do?," Journal of Business Venturing, Elsevier, vol. 4(4), pages 231-248, July.
- Freear, John & Wetzel, William Jr., 1990. "Who bankrolls high-tech entrepreneurs?," Journal of Business Venturing, Elsevier, vol. 5(2), pages 77-89, March.
- Haar, Nancy E. & Starr, Jennifer & MacMillan, Ian C., 1988. "Informal risk capital investors: Investment patterns on the East Coast of the U.S.A," Journal of Business Venturing, Elsevier, vol. 3(1), pages 11-29.
- Macmillan, Ian C. & Kulow, David M. & Khoylian, Roubina, 1989. "Venture capitalists' involvement in their investments: Extent and performance," Journal of Business Venturing, Elsevier, vol. 4(1), pages 27-47, January.
When requesting a correction, please mention this item's handle: RePEc:pep:journl:v:5:y:1996:i:2:p:139-58. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Craig Everett)
If references are entirely missing, you can add them using this form.