The Globalization of Angel Investments: Evidence Across Countries

52 Pages Posted: 14 Dec 2015 Last revised: 2 Feb 2023

See all articles by Josh Lerner

Josh Lerner

Harvard Business School - Finance Unit; Harvard University - Entrepreneurial Management Unit; National Bureau of Economic Research (NBER); European Corporate Governance Institute (ECGI); Harvard University - Private Capital Research Institute

Antoinette Schoar

Massachusetts Institute of Technology (MIT) - Sloan School of Management; National Bureau of Economic Research (NBER)

Stanislav Sokolinski

Michigan State University - Department of Finance

Karen E. Wilson

GV Partners; Organization for Economic Co-Operation and Development (OECD)

Multiple version iconThere are 2 versions of this paper

Date Written: December 2015

Abstract

This paper examines investments made by 13 angel groups across 21 countries. We compare applicants just above and below the funding cutoff and find that these angel investors have a positive impact on the growth, performance, and survival of firms as well as their follow-on fundraising. The positive impact of angel financing is independent of the level of venture activity and entrepreneur-friendliness in the country. However, we find that the development stage and maturity of startups that apply for angel funding (and those that are ultimately funded) is inversely correlated with the entrepreneurship-friendliness of the country, which may reflect self-censoring by very early-stage firms that do not expect to receive funding in these environments.

Suggested Citation

Lerner, Josh and Schoar, Antoinette and Sokolinski, Stanislav and Wilson, Karen E., The Globalization of Angel Investments: Evidence Across Countries (December 2015). NBER Working Paper No. w21808, Available at SSRN: https://ssrn.com/abstract=2703212

Josh Lerner (Contact Author)

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Stanislav Sokolinski

Michigan State University - Department of Finance ( email )

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Karen E. Wilson

GV Partners ( email )

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