Co-Investment Networks of Business Angels and the Performance of Their Start-Up Investments
Jochen Christian Werth
Goethe University Frankfurt
December 31, 2011
International Journal of Entrepreneurial Venturing, 2013 Vol. 5 No. 3
The venture capital literature has established the positive impact of coinvestment networks on the performance of start-up investments. In early stages, however, often angel financing is the primary source of external equity. Using a novel in-depth data set of U.S. high technology start-ups we investigate the effects of business angel networks. Start-ups of better connected angel investors are more likely to receive subsequent funding by venture capitalists and business angels more often exit successfully. Thereby, angel investors seem to rely on their direct contacts, whereas their network position and possibility to act as information brokers plays a far lesser role.
Number of Pages in PDF File: 25
Keywords: business angel, start-up, venture capital, network, social capital, entrepreneurship
JEL Classification: A14, C23, G24, M13Accepted Paper Series
Date posted: January 1, 2012 ; Last revised: January 30, 2014
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