Angel group members' decision process and rejection criteria: A longitudinal analysis

Cécile Carpentier and Jean-Marc Suret

Journal of Business Venturing, 2015, vol. 30, issue 6, 808-821

Abstract: This paper investigates business angel group members' decision-making from project submission to the final decision. Using a Canadian group's archival data on 636 proposals, we provide a detailed longitudinal analysis of the decision process. The rejection reasons generally refer to market and execution risk; this finding holds for every step of the process for proposals that pass the pre-screen. Angel group members focus more on market and execution risk than agency risk, similar to venture capitalists. Inexperienced entrepreneurs are rejected for market and product reasons. Decision-making by the studied angel group members differs from that generally described for independent angels.

Keywords: Business angel; Angel group; Financing; Decision process; Experience (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (37)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbvent:v:30:y:2015:i:6:p:808-821

DOI: 10.1016/j.jbusvent.2015.04.002

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