The interest in the role of informal investors
in the venture capital market has increased since the identification of the business angel's participation in early stages of entrepreneurship (Heukamp, Liechtenstein, & Wakeling, 2006).
Studies on informal investors
have been basically focused on the sub-segment, of business angels, and it is particularly relevant that few scholars have adopted a gender perspective in this field (Sohl, Hill 2007; Harrison, Mason 2007; Zimmerman, Scott 2006; O'Gorman, Terjesen 2006; Blake 2006; Green et al.
The study debunks the classic picture of an informal investor
as a ``business angel'' - a person with enough spare cash and business experience to invest in other businesses.
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.
, BAN Members, and Members of National and European Parliaments will contribute to this Conference through informal dialogue.
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.
It needs to be emphasised at the outset that informal investors
are extremely difficult to identify and locate.
LINC Scotland brings the "angels" in the shape of informal investors
into contact with new and developing companies in need of funding.
AMSTERDAM -- On April 14, 2011, IIP closed a round of funding with informal investors
to fuel growth and create extra capacity within the FUGA (www.
such as business angels are also a possible source of such finance, although it is becoming clear that the entrepreneur seeking such finance must have the knowledge and ability to identify a feasible development project and produce a supporting business plan to realise it.
In making their investment decisions, informal investors
are motivated first and foremost by the opportunity for high capital appreciation.