Start-ups positively impact on economic development. Especially innovative and fast growing ventures significantly contribute to economic growth and structural change. However, due to the elevated risks attached to start-up projects, entrepreneurs face dramatic hurdles when it comes to attract financial resources. Loan managers at banks tend to be rather conservative in this respect. Providing an alternative access to financing Business Angels may step in and bridge this finance gap.
Up to now, management literature on start-up financing has focused on the characteristics and motives of investors and the characteristics and needs of the entrepreneurs. The role of the Business Angels’ networks in the decision process whether or not to invest in a specific venture is still under researched.
The project “Business Angels and their Network” strives to shed light on the role of the Business Angels’ networks in the investment decision process.
We approach successful Business Angels in Austria, Sweden and Great Britain and conduct qualitative interviews. The findings will constitute the basis for conducting a quantitative survey among Business Angels and their network members in those countries.