Born Global Firms and Informal Investors: Examining Investor Characteristics

14 Pages Posted: 19 Sep 2008

See all articles by Øystein Moen

Øystein Moen

Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology

Roger Sørheim

affiliation not provided to SSRN

Truls Erikson

Norwegian University of Science and Technology

Abstract

A Born Global is a new venture with a global niche market focus from day one. Many of these firms experience high growth rates, but also, a considerable need for funding. This study contrasts informal investors involved in born global firms (Born Global Investors) with other informal investors. The underlying thesis is that the behavior of these investors reflects their investment philosophy, at least on a differential basis. The results suggest that born global investors differ from other informal investors in terms of deal origin, investment size, and exit preferences. Their experience as managers of large firms seems to be a particularly important factor, increasing investment capacity (income and fortune), while personal and professional networks influence the access to information about investment opportunities. The importance of these results for the development of born global firms is discussed.

Suggested Citation

Moen, Øystein and Sørheim, Roger and Erikson, Truls, Born Global Firms and Informal Investors: Examining Investor Characteristics. Journal of Small Business Management, Vol. 46, No. 4, pp. 536-549, October 2008. Available at SSRN: https://ssrn.com/abstract=1270335 or http://dx.doi.org/10.1111/j.1540-627X.2008.00255.x

Øystein Moen

Norwegian University of Science and Technology (NTNU) - Department of Industrial Economics and Technology ( email )

NO-7491 Trondheim
Norway

Roger Sørheim

affiliation not provided to SSRN

No Address Available

Truls Erikson (Contact Author)

Norwegian University of Science and Technology ( email )

Høgskoleringen
Trondheim NO-7491, 7491
Norway

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