The globalization of angel investments: Evidence across countries

Josh Lerner, Antoinette Schoar, Stanislav Sokolinski and Karen Wilson

Journal of Financial Economics, 2018, vol. 127, issue 1, 1-20

Abstract: This paper examines the role of investments by angel groups across a heterogeneous set of 21 countries with varying entrepreneurship ecosystems. Exploiting quasi-random assignment of deals around the groups’ funding thresholds, we find a positive impact of funding on firm growth, performance, survival, and follow-on fundraising, which is independent of the level of venture activity and entrepreneur-friendliness in the country. However, the maturity of startups that apply for funding (and are ultimately funded) inversely correlates with the entrepreneurship-friendliness of the country. This may reflect self-censoring by early-stage firms that do not expect to receive funding in these environments.

Keywords: Contracts; Entrepreneurial finance; Venture capital (search for similar items in EconPapers)
JEL-codes: G24 K22 (search for similar items in EconPapers)
Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (41)

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Related works:
Working Paper: The Globalization of Angel Investments: Evidence across Countries (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jfinec:v:127:y:2018:i:1:p:1-20

DOI: 10.1016/j.jfineco.2017.05.012

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