The Performance of Angel-Backed Companies

64 Pages Posted: 20 Sep 2017 Last revised: 16 Jan 2019

See all articles by Stefano Bonini

Stefano Bonini

Stevens Institute of Technology - School of Business

Vincenzo Capizzi

University of Piemonte Orientale - Department of Economics and Business Studies; SDA Bocconi School of Management

Paola Zocchi

University of Piemonte Orientale - Department of Economics and Business Studies

Date Written: December 1, 2018

Abstract

We provide empirical evidence of the post-investment performance and survivorship profile of angel-backed companies, filling a long-standing gap within the entrepreneurial finance literature. Using a unique database of 111 angel-backed companies that received angel investments between 2008 and 2012 and at least 3 years of post-investment financial data, we develop an innovative performance metric and show that the performance and the probability of survival of investee companies are positively affected by the presence of angel syndicates and the hands-on involvement of business angels, while they are negatively related to the intensity of angel monitoring and the structure of equity provision. Our results are robust to several endogeneity tests and provide insights on the multifaceted contributions of angel investors to the performance and survival of new ventures.

Keywords: business angels, start-ups, angel-backed companies, performance, survival, monitoring, active involvement, co-investments

JEL Classification: G24, G32, M13

Suggested Citation

Bonini, Stefano and Capizzi, Vincenzo and Zocchi, Paola, The Performance of Angel-Backed Companies (December 1, 2018). Journal of Banking and Finance, Forthcoming. Available at SSRN: https://ssrn.com/abstract=3039307 or http://dx.doi.org/10.2139/ssrn.3039307

Stefano Bonini

Stevens Institute of Technology - School of Business ( email )

Hoboken, NJ 07030
United States

Vincenzo Capizzi (Contact Author)

University of Piemonte Orientale - Department of Economics and Business Studies ( email )

Via E. Perrone, 18
Novara, NO 28100
Italy
+390321375438 (Phone)
+390321375405 (Fax)

HOME PAGE: http://www.uniupo.it

SDA Bocconi School of Management ( email )

Via F. Bocconi, 8
Milan, Milan 20136
Italy
+390258365966 (Phone)
+390258366893 (Fax)

HOME PAGE: http://www.sdabocconi.it

Paola Zocchi

University of Piemonte Orientale - Department of Economics and Business Studies ( email )

via E. Perrone 18
Novara, Novara 28100
Italy

Register to save articles to
your library

Register

Paper statistics

Downloads
131
Abstract Views
525
rank
218,005
PlumX Metrics