In the context of informal investment, this theory would imply the existence of gender differences in socio-economic aspects such as education levels and employment status among others; in the perceptions related to entrepreneurship such as good opportunities, developed skills and fear of failure; and in the relationship between the informal investor
and the entrepreneur.
But while the availability of venture capital in Wales is important in encouraging the development of high growth businesses, policy-makers also need to be aware of the crucial nature of the start-up capital provided by entrepreneurs themselves and informal investors
1989) Attitudes and behaviors of informal investors
toward early-stage investments, technology-based ventures and coinvestors.
Now plans are under discussion to enlarge the scheme to the whole range of informal investors
, including intermediated informal funds.
Within the research canon on informal venture capital, the issue of trust has been explored as part of a wider study of information sources, networks, and reliance structures (Fiet, 1991): for the informal venture capital market, Fiet's results suggest that the degree of reliance on others in the personal contact network (which was lower in any case for informal investors
compared to venture capitalists) was a function of the amount of network experience; in other words, "experience generated trust which controlled opportunism" (Freear et al.
Somewhat unusually for an informal investor
syndicate, the members of the Metrogroup syndicate did not rely exclusively on their own social and business networks to identify investment opportunities: they also advertised in the financial press and were listed in venture capital reference books and on databases.
Whilst the availability of venture capital in Wales is important in encouraging the development of high growth businesses, policy-makers also need to be aware of the crucial nature of the start-up capital provided by entrepreneurs themselves and informal investors
Commenting on the latest findings of small business financing from the 2003 Global Entrepreneurship Monitor (GEM), Marianne Hudson, executive director of the Angel Capital Association (ACA), a program of the Ewing Marion Kauffman Foundation of Kansas City, said, "Angel investor groups are filling an important funding niche between informal investors
of family and friends and formal venture capital.
What is most interesting is that a close personal relationship between investor and recipient is an important criterion for senior and older investors with more than half of informal investors
in these age groups supporting close family members.
He warns that "it may be counterproductive to the economy to encourage amateur informal investors
, but that business angels are not amateurs".
Another kind of informal network in which entrepreneurs relied on to engage in entrepreneurial activities is the informal investors
such as the business angels (OECD, 2011).
FOR many small growing firms, individual informal investors
play a vital role in supporting their development.