Why business angels' say no: a case study of opportunities rejected by an informal investor
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).
Harrison, 1996a, "Why Business Angels Say No: A Case Study of Opportunities Rejected by An Informal Investor
Syndicate", International Small Business Journal, 14, 35-51.
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.
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
* Informal investors
funded 99.96 percent of all businesses and supplied 90 percent of the total amount invested in businesses in the 31 countries surveyed.
Firstly, the [TABULAR DATA FOR TABLE 1 OMITTED] researcher can use a convenience or a random sample of firms from a database and encourage them to provide information on their informal investors
(Aram, 1989; Freear & Wetzel, 1990; Freear, Sohl, & Wetzel, 1994a).
The British Venture Capital Association says Scotland is the "hottest spot" for informal investors
to breathe life into fast developing firms by investing much-needed cash and skills.
The Dutch informal investor
market is estimated to be at least as large as the formal venture capital market.(121) Informal investors
, often known as "angels", play an important role in providing not only funding but also important management skills.
In other places, informal investors
finance up to 20 times the number of small businesses as do institutional venture capitalists, however such informal investment is still a rarity in this country," he says.
and emphasizes that "there is probably no single best way to facilitate the transfer of new ideas from universities to the commercial sector." The focal point of this chapter is on: The Venture Capital Network (VCN) which is a "dating service" that seeks to bring together inventors/entrepreneurs and informal investors
, who are sources of first-stage venture capital in the $50-$75K range.