Angel Investors Around the World

Journal of International Business Studies (JIBS), Forthcoming

46 Pages Posted: 27 Aug 2018

See all articles by Douglas J. Cumming

Douglas J. Cumming

Florida Atlantic University

Minjie Zhang

Odette School of Business - University of Windsor

Date Written: August 4, 2018

Abstract

We document that the choice between disintermediated individual angel investments and intermediated private equity and venture capital investments depends on legal, economic, and cultural differences. We find evidence of this using PitchBook's comprehensive data on more than 5,000 angel and 80,000 private equity and venture capital investments in 96 countries from 1977 to 2012. The data further indicate that investee firms funded by angels are less likely to successfully exit through either an IPO or an acquisition. These findings are robust to propensity score matching methods, as well as to clustering standard errors and excluding U.S. observations, among other approaches.

Keywords: Private Equity, Angel Investor, Venture Capital, Entrepreneurship, Law and Finance, Culture

JEL Classification: G22, G23, G24, K22, K35

Suggested Citation

Cumming, Douglas J. and Zhang, Minjie, Angel Investors Around the World (August 4, 2018). Journal of International Business Studies (JIBS), Forthcoming. Available at SSRN: https://ssrn.com/abstract=3226373

Douglas J. Cumming

Florida Atlantic University ( email )

777 Glades Rd
Boca Raton, FL 33431
United States

HOME PAGE: http://booksite.elsevier.com/9780124095373/

Minjie Zhang (Contact Author)

Odette School of Business - University of Windsor ( email )

401 Sunset Avenue
Windsor, Ontario N9B 3P4
Canada

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