Co-investment networks of business angels and the performance of their start-up investments

Jochen Christian Werth and Patrick Boeert

International Journal of Entrepreneurial Venturing, 2013, vol. 5, issue 3, 240-256

Abstract: The venture capital literature has established the positive impact of co-investment networks on the performance of start-up investments. In early stages, however, often angel financing is the primary source of external equity. Using a novel in-depth dataset of US high technology start-ups we investigate the effects of business angel networks. Start-ups of better connected angel investors are more likely to receive subsequent funding by venture capitalists and business angels more often exit successfully. Thereby, angel investors seem to rely on their direct contacts, whereas their network position and possibility to act as information brokers plays a far smaller role.

Keywords: business angels; venture capital; high tech start-ups; social capital; entrepreneurship; co-investment networks; investment performance; start-up investments; USA; United States; high technology; business angel networks. (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:ids:ijeven:v:5:y:2013:i:3:p:240-256

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