The Transformation of the Business Angel Market: Evidence from Scotland

43 Pages Posted: 7 Aug 2013

See all articles by Colin M. Mason

Colin M. Mason

University of Glasgow - Adam Smith Business School

Tiago Botelho

University of East Anglia (UEA) - Norwich Business School

Richard Harrison

University of Edinburgh - Business School

Date Written: August 2013

Abstract

Business angel investing – a key source of finance for entrepreneurial businesses – is evolving from a fragmented and largely anonymous activity dominated by individuals investing on their own to one that is increasingly characterised by groups of investors investing together through managed angel syndicates. The implications of this change have been largely ignored by scholars. Based on research in Scotland, which has experienced a particularly rapid growth in angel groups, the paper examines the following issues: the drivers of this change, the characteristics of the groups; their investment activity and outcomes; the investment process of angel groups; and the characteristics and role of group ‘gatekeepers’. The paper concludes with an assessment of the impact of this growth of angel groups on the economy and considers the implications for other regions and countries.

Keywords: entrepreneurial finance, business angels, angel groups, angel syndicates, regional development

JEL Classification: M13

Suggested Citation

Mason, Colin M. and Botelho, Tiago and Harrison, Richard T., The Transformation of the Business Angel Market: Evidence from Scotland (August 2013). Available at SSRN: https://ssrn.com/abstract=2306653 or http://dx.doi.org/10.2139/ssrn.2306653

Colin M. Mason

University of Glasgow - Adam Smith Business School ( email )

Glasgow, Scotland
United Kingdom

Tiago Botelho (Contact Author)

University of East Anglia (UEA) - Norwich Business School ( email )

Norwich
NR4 7TJ
United Kingdom

Richard T. Harrison

University of Edinburgh - Business School ( email )

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
United Kingdom

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