Financial services support for entrepreneurial projects: key issues in the business angels investment decision process

The objective of this paper is to provide knowledge about the determinants of success in the screening phase of the investment process and to demonstrate its relationship with success in obtaining capital from business angels (BA). This research sets out to achieve this objective by analyzing the im...

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Bibliographic Details
Published in:The Service industries journal 2013-07, Vol.33 (9-10), p.806-819
Main Authors: Argerich, Jaume, Hormiga, Esther, Valls-Pasola, Jaume
Format: Article
Language:English
Subjects:
Angel investors
business angels
Decision making
Entrepreneurial finance
entrepreneurship
Financial services
informal investors
investment process
screening phase
Studies
Success
Success factors
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Summary:The objective of this paper is to provide knowledge about the determinants of success in the screening phase of the investment process and to demonstrate its relationship with success in obtaining capital from business angels (BA). This research sets out to achieve this objective by analyzing the impact that the evaluation of the business opportunity, the managing team and the presentation have on success in the screening phase. To do this, the research proposes four main hypotheses that are tested on 215 projects presented at a BA's network. The data for the analysis are extracted both from the BA and from the entrepreneurs. The results show that the evaluation of the presentation is the most important factor that influences success in the screening phase, followed by the evaluation of the business opportunity.
ISSN:0264-2069
1743-9507
DOI:10.1080/02642069.2013.719891