Business angels and early stage decision making criteria: empirical evidence from an emerging market
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26510%2F22%3APU145277" target="_blank" >RIV/00216305:26510/22:PU145277 - isvavai.cz</a>
Result on the web
<a href="https://www.tandfonline.com/doi/full/10.1080/1331677X.2022.2063920" target="_blank" >https://www.tandfonline.com/doi/full/10.1080/1331677X.2022.2063920</a>
DOI - Digital Object Identifier
<a href="http://dx.doi.org/10.1080/1331677X.2022.2063920" target="_blank" >10.1080/1331677X.2022.2063920</a>
Alternative languages
Result language
angličtina
Original language name
Business angels and early stage decision making criteria: empirical evidence from an emerging market
Original language description
How do business angels assess a prospective entrepreneurial firm when they make an investment decision? This article examines a central question that informal venture capitalists have been struggling with for decades: What early stage decision making criteria do investors define and apply to reduce the volume of potential deals to a more manageable size? Based on semi-structured interviews with business angels in an emerging market, we show that investors are focused on the industry structure and product features, on the other side, our results also suggest a very strong support for the personality of the entrepreneur and management team. More specifically, entrepreneur trustworthiness is an essential element affecting an investor’s decision to close a deal. Business angels set requirements in terms of the entrepreneur’s equity stake in the start-up and monitoring tools to prevent the failure of investee firms. Our findings suggest that if there are warning signs that the project is in an existential crisis, most of the investors will reject their participation. We believe that our empirical results support both researchers and practitioners to establish a better understanding between the well-developed financial theories and the underresearched informal venture capital market in a Central and Eastern European country.
Czech name
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Czech description
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Classification
Type
J<sub>imp</sub> - Article in a specialist periodical, which is included in the Web of Science database
CEP classification
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OECD FORD branch
50202 - Applied Economics, Econometrics
Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2022
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Name of the periodical
EKON ISTRAZ
ISSN
1331-677X
e-ISSN
1848-9664
Volume of the periodical
2022
Issue of the periodical within the volume
APR
Country of publishing house
HR - CROATIA
Number of pages
26
Pages from-to
1-26
UT code for WoS article
000800461200001
EID of the result in the Scopus database
2-s2.0-85130703430