TY - JOUR
T1 - The performance of angel-backed companies
AU - Bonini, Stefano
AU - Capizzi, Vincenzo
AU - Zocchi, Paola
N1 - Publisher Copyright:
© 2018 Elsevier B.V.
PY - 2019/3
Y1 - 2019/3
N2 - 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 time 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.
AB - 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 time 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.
KW - Business angels
KW - Co-investors
KW - Performance
KW - Start-ups
KW - Survival
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U2 - 10.1016/j.jbankfin.2018.12.006
DO - 10.1016/j.jbankfin.2018.12.006
M3 - Article
AN - SCOPUS:85058642642
SN - 0378-4266
VL - 100
SP - 328
EP - 345
JO - Journal of Banking and Finance
JF - Journal of Banking and Finance
ER -