 Why don’t you like me? Exploring the social venture funding gap in angel investingHenrik Wesemann and Torben Antretter Journal of Business Venturing Insights, 2023, vol. 20, issue C Abstract: While many studies on the social venture funding gap have focused on venture-level factors to explain why social ventures receive less funding, the role of investors and their characteristics has received less attention. In this study, we propose that the reason for much of the funding gap is that many angel investors lack the analytical capabilities required to assess double bottom lines. Drawing on the literature on human capital in angel investing, we use data on 19,757 investment decisions by 1,428 angel investors from a large angel investment network to investigate the relationship between venture type, angel investor analytical capability, and investment likelihood. We find that the reluctance to invest into social ventures disappears for analytically capable angel investors (those who are relatively educated, experienced, and connected). These findings demonstrate the importance of investor human capital in social venture funding and closing the funding gap. Keywords: Angel investments; Social ventures; Impact investing; Fundraising; Human capital (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:jobuve:v:20:y:2023:i:c:s2352673423000628 DOI: 10.1016/j.jbvi.2023.e00433 Access Statistics for this article Journal of Business Venturing Insights is currently edited by Dimo Dimov More articles in Journal of Business Venturing Insights from Elsevier |
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