Business angel exits: a theory of planned behaviour perspective

Tiago Botelho, Richard Harrison and Colin Mason ()
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Tiago Botelho: University of East Anglia
Richard Harrison: University of Edinburgh Management School
Colin Mason: University of Glasgow

Small Business Economics, 2021, vol. 57, issue 1, No 24, 583-602

Abstract: Abstract Although there are a handful of studies on business angel investment returns, the business angel literature has given little or no attention to exits and the exit strategy. This is surprising given that a primary objective of investing is to achieve a capital gain through some form of liquidity event. Using the theory of planned behaviour (TPB) as an interpretative heuristic, we examine how exits happen: specifically, what are the motivations to seek an exit and to what extent are they planned or opportunistic? Based on multiple case studies in which business angels were invited to tell the story of their most recent exit(s), the evidence suggests that the majority of liquidity events are the outcome of planned behaviour. We propose a typology of angel-backed investment exits as the basis for identifying future directions for research and developing practical advice to angels on effective business practices.

Keywords: Business angels; Harvest event; Entrepreneurial exit; Investment returns; Theory of planned behaviour (search for similar items in EconPapers)
JEL-codes: D91 G23 G24 L26 M13 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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DOI: 10.1007/s11187-019-00292-0

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