INVESTMENT DECISION FACTORS OF BUSINESS ANGELS IN JAPANESE REGIONAL STARTUPS: THE INFLUENCE OF GROWTH STRATEGIES AND SOCIAL CAPITAL ON INVESTMENT BEHAVIOR

Toshifumi Shimizu () and Toshihiko Ishihara ()
Additional contact information
Toshifumi Shimizu: Kwansei Gakuin University, Japan
Toshihiko Ishihara: IBA Business School, Kwansei Gakuin University, Japan

Eurasian Journal of Business and Management, 2024, vol. 12, issue 3-4, 160-171

Abstract: This study aims to address the funding disparities faced by regional startups in Japan by conducting a multifaceted analysis of business angel investment behavior. The focus is on examining how growth strategies and social capital influence BA investment decisions, while highlighting the differences in the fundraising environment between Tokyo and regional areas. Initially, a topic model analysis was conducted on company data collected from press releases and startup databases, revealing distinct investment themes by region. In Tokyo, investments are predominantly directed towards AI and platform-based ventures, whereas regional areas demonstrate a strong focus on sectors like agriculture and healthcare. Furthermore, a sequential pattern analysis was employed to examine the impact of different investor combinations on fundraising outcomes, uncovering unique investment patterns in regional areas that support local growth. This research offers new insights into how region-specific investment behaviors and networks can contribute to bridging the equity gap. The findings provide practical implications for fostering regional economic revitalization by leveraging localized investment strategies and social capital.

Keywords: Business Angels; Regional Startups; Growth Strategies; Social Capital; Regional Equity Gap (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://eurasianpublications.com/wp-content/uploads/2025/01/ejbm-12.3-4.3_v1.pdf (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ejn:ejbmjr:v:12:y:2024:i:3-4:p:160-171

Access Statistics for this article

Eurasian Journal of Business and Management is currently edited by Nidžara Osmanagić-Bedenik

More articles in Eurasian Journal of Business and Management from Eurasian Publications
Bibliographic data for series maintained by Esra Barakli ().