Entrepreneur's Experience and Angels' Decision Process: A Longitudinal Analysis

37 Pages Posted: 18 Apr 2013

See all articles by Cécile Carpentier

Cécile Carpentier

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO); University of Lille II - European Center for Corporate Control Studies

Jean-Marc Suret

Laval University; Center for Interuniversity Research and Analysis on Organization (CIRANO); European Center for Corporate Control Studies

Date Written: March 31, 2013

Abstract

To determine if and why entrepreneurs’ experience determines their propensity to be financed by angels, we conduct the first longitudinal analysis of the decision process of a business angel network. We code the rejection reasons recorded by the network in each file to estimate the preparedness and outcome of 636 applications. We score the entrepreneurs’ experience from their résumés. Non industry-experienced promoters have no chance of obtaining financing because of the weakness of their proposal, but are not rejected due to team weakness. We evidence several differences with the commonly accepted description of the selection process.

Keywords: business angel, financing, decision process, experience, start-up

Suggested Citation

Carpentier, Cécile and Suret, Jean-Marc, Entrepreneur's Experience and Angels' Decision Process: A Longitudinal Analysis (March 31, 2013). Available at SSRN: https://ssrn.com/abstract=2253289 or http://dx.doi.org/10.2139/ssrn.2253289

Cécile Carpentier

Laval University ( email )

Pavilion Palasis Prince
Quebec, Quebec G1V 0A6
Canada

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

2020 rue University, 25th floor
Montreal, Quebec H3C 3J7
Canada

University of Lille II - European Center for Corporate Control Studies ( email )

2 rue de Mulhouse
BP381
Lille, 59800
France

Jean-Marc Suret (Contact Author)

Laval University ( email )

Accounting School
Quebec, P.Q. G1K 7P4
Canada
418-656-7134 (Phone)
418-656-7746 (Fax)

Center for Interuniversity Research and Analysis on Organization (CIRANO) ( email )

1130 rue Sherbrooke Ouest
Bureau 1400
Montreal, Quebec H3A 2M8
Canada

European Center for Corporate Control Studies ( email )

2 rue de Mulhouse
BP381
Lille, 59800
France

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