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The Globalization of Angel Investments: Evidence Across Countries

52 Pages Posted: 14 Dec 2015 Last revised: 4 Jan 2016

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER)

Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Stanislav Sokolinski

Harvard University - Department of Economics

Karen E. Wilson

Bruegel; Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI)

Multiple version iconThere are 2 versions of this paper

Date Written: December 2015

Abstract

This paper examines investments made by 13 angel groups across 21 countries. We compare applicants just above and below the funding cutoff and find that these angel investors have a positive impact on the growth, performance, and survival of firms as well as their follow-on fundraising. The positive impact of angel financing is independent of the level of venture activity and entrepreneur-friendliness in the country. However, we find that the development stage and maturity of startups that apply for angel funding (and those that are ultimately funded) is inversely correlated with the entrepreneurship-friendliness of the country, which may reflect self-censoring by very early-stage firms that do not expect to receive funding in these environments.

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Suggested Citation

Lerner, Josh and Schoar, Antoinette and Sokolinski, Stanislav and Wilson, Karen E., The Globalization of Angel Investments: Evidence Across Countries (December 2015). NBER Working Paper No. w21808. Available at SSRN: https://ssrn.com/abstract=2703212

Josh Lerner (Contact Author)

Harvard Business School - Finance Unit ( email )

Boston, MA 02163
United States
617-495-6065 (Phone)
617-496-7357 (Fax)

HOME PAGE: http://www.people.hbs.edu/jlerner/

Harvard University - Entrepreneurial Management Unit

Cambridge, MA 02163
United States

National Bureau of Economic Research (NBER)

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Cambridge, MA 02138
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Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management ( email )

50 Memorial Drive, E52-447
Cambridge, MA 02142
United States
617-253-3763 (Phone)
617-258-6855 (Fax)

National Bureau of Economic Research (NBER) ( email )

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Cambridge, MA 02138
United States

Stanislav Sokolinski

Harvard University - Department of Economics ( email )

1875 Cambridge Street
Cambridge, MA 02138
United States

Karen Wilson

Bruegel ( email )

Rue de la Charité 33
B-1210 Brussels Belgium
Belgium

HOME PAGE: http://www.bruegel.org

Organization for Economic Co-Operation and Development (OECD) - Directorate for Science, Technology and Industry (STI) ( email )

Paris
France

HOME PAGE: http://www.oecd.org

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