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The informal investment context: specific issues concerned with business angels

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  • Hoyos Iruarrizaga, Jon

    () (Universidad del País Vasco)

  • Saiz Santos, María

    (Universidad del País Vasco)

Abstract

Informal investors play a key role to meet the financing needs of business projects in early stages. However, this is a group in which there are different kinds and ways of dealing with investment. One of these profiles is associated with the figure known as business angel, whose main distinguishing feature is its ability to add smart capital in the form of knowledge, experience and contacts. The aim of this paper is to determine to what extent the specific profile of business angels differ from the rest of informal investors. With a sample of over 800 informal investors in Spain, the empirical results of this study show that the higher income, skills and entrepreneurial training and the less family ties to the entrepreneur, the greater the probability of belonging to business angel investment group.

Suggested Citation

  • Hoyos Iruarrizaga, Jon & Saiz Santos, María, 2013. "The informal investment context: specific issues concerned with business angels," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 26, pages 179-198.
  • Handle: RePEc:ris:invreg:0236
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    References listed on IDEAS

    as
    1. 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.
    2. Mason, Colin M & Harrison, Richard T, 1995. "Closing the Regional Equity Capital Gap: The Role of Informal Venture Capital," Small Business Economics, Springer, vol. 7(2), pages 153-172, April.
    3. Diamanto Politis & Hans Landström, 2002. "Informal investors as entrepreneurs--the development of an entrepreneurial career," Venture Capital, Taylor & Francis Journals, vol. 4(2), pages 78-101, April.
    4. Jesper Lindgaard Christensen, 2011. "Should government support business angel networks? The tale of Danish business angels network," Venture Capital, Taylor & Francis Journals, vol. 13(4), pages 337-356, April.
    5. Poh Kam Wong & Yuen Ping Ho, 2006. "Characteristics and determinants of informal investment in Singapore," Venture Capital, Taylor & Francis Journals, vol. 9(1), pages 43-70, June.
    6. Maxwell, Andrew L. & Jeffrey, Scott A. & Lévesque, Moren, 2011. "Business angel early stage decision making," Journal of Business Venturing, Elsevier, vol. 26(2), pages 212-225, March.
    7. Ans Heirman & Bart Clarysse, 2004. "How and Why do Research-Based Start-Ups Differ at Founding? A Resource-Based Configurational Perspective," The Journal of Technology Transfer, Springer, vol. 29(3_4), pages 247-268, August.
    8. Markku Maula & Erkko Autio & Gordon Murray, 2005. "Corporate Venture Capitalists and Independent Venture Capitalists: What do they know, Who do They Know and Should Entrepreneurs Care?," Venture Capital, Taylor & Francis Journals, vol. 7(1), pages 3-21, January.
    9. Freear, John & Sohl, Jeffrey E. & Wetzel, William Jr., 1994. "Angels and non-angels: Are there differences?," Journal of Business Venturing, Elsevier, vol. 9(2), pages 109-123, March.
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    More about this item

    Keywords

    informal investing; business angels; entrepreneurship;

    JEL classification:

    • G29 - Financial Economics - - Financial Institutions and Services - - - Other

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