The performance of angel-backed companies

Stefano Bonini, Vincenzo Capizzi, Paola Zocchi

Research output: Contribution to journalArticlepeer-review

34 Scopus citations

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 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.

Original languageEnglish
Pages (from-to)328-345
Number of pages18
JournalJournal of Banking and Finance
Volume100
DOIs
StatePublished - Mar 2019

Keywords

  • Business angels
  • Co-investors
  • Performance
  • Start-ups
  • Survival

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