Working paper

The globalisation of angel investments

Nature and consequences of angel investments across a variety of geographies with varying levels of venture capital markets and other forms of risk ca

Publishing date
01 September 2015

Highlights

  • The last decade has seen a rapid expansion and deepening of the types of vehicles that fund start-up firms in the U.S. and worldwide. In particular, we have seen a growing role of angel groups and other more “individualistic” funding options for start-ups, such as super angels or crowd sourcing platforms.
  • Authors seek to understand the nature and consequences of angel investments across a variety of geographies with varying levels of venture capital markets and other forms of risk capital. They ask whether angel investors improve the outcomes and performance of the start-ups they invest in. Furthermore we want to understand whether and how the types of firms that seek angel funding vary with the overall entrepreneurial ecosystem in a country.
  • Authors examine the records of 13 angel investment groups based in 12 nations and with applicants for financing transactions from 21 nations, examining both the applicants that were considered and rejected and those that were funded.
  • Key findings from the analysis are two-fold. First, angel investors have a positive impact on the growth of the firms they fund, their performance, and survival. Second, they find that the selection of firms that apply for angel funding is different across countries.

About the authors

  • Karen Wilson

    Karen joined Bruegel in September 2012. She has worked in the Structural Policy Division of the Science, Technology and Industry Directorate at the OECD since 2009 and served as a Senior Fellow at the Kauffman Foundation from 2008-2012. She is an Associate Fellow at the Said Business School at Oxford University and a Visiting Lecturer at the Stockholm School of Economics in Riga. Karen is the founder of GV Partners, a research and consulting firm she created in 2004. Her work at Bruegel focuses on entrepreneurship and innovation.

    Karen is a Board Member and Advisor of the European Foundation for Entrepreneurship Research (EFER), a member of the European Leadership Council for Harvard Business School, a Research and Policy Advisor for the U.K. Prince’s Trust Youth Business International (YBI), and an expert on the European Commission Horizon 2020 Access to Risk Finance Advisory Group. She is the author of a number of publications on entrepreneurship and finance.

    Prior to founding GV Partners, Karen worked with a leading international venture capital firm. Previously, she was part of the senior management team at the World Economic Forum and, before that, served as the Executive Director of the Global Initiative at Harvard Business School. She received, with honors, a Bachelors of Science in Mathematics and Management from Carnegie Mellon University and an MBA from Harvard Business School.

    Declaration of interests 2015

  • Josh Learner

  • Stanislav Sokolinski

  • Antoinette Schoar

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