The Returns from Informal Venture Capital Investments: An Exploratory Study

Annareetta Lumme, Colin Mason and Markku Suomi
Additional contact information
Annareetta Lumme: Kera Ltd, Helsinki
Colin Mason: University of Southampton
Markku Suomi: Helsinki University Technology

Journal of Entrepreneurial Finance, 1996, vol. 5, issue 2, 139-58

Abstract: Despite the recent increase in research on informal venture capital there are many aspects of this market for which no information exists. One such issue is exits. This exploratory study is the first to address this issue. It is based on a survey of 38 active business angels in Finland who had made a total of 155 investments; 20 of these investors had made 49 exits. Two aspects are addressed. First, evidence is presented on investment performance and the timing and method of exit. Second, the paper explores differences between those investors with a successful track-record of exits and those with an unsuccessful track-record. Differences are identified in terms of motivations for investing, volume and sources of information on investment opportunities, prior relationship with investee businesses, perception of value-added and employment background. However, conclusions should only be regarded as suggestive in view of the small numbers involved.

Keywords: Investment; Venture Capital; Informal (search for similar items in EconPapers)
JEL-codes: G24 G31 (search for similar items in EconPapers)
Date: 1996
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://jefsite.org/RePEc/pep/journl/jef-1996-05-2-d-lumme.pdf (application/pdf)

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:pep:journl:v:5:y:1996:i:2:p:139-58

Access Statistics for this article

More articles in Journal of Entrepreneurial Finance from Pepperdine University, Graziadio School of Business and Management Contact information at EDIRC.
Bibliographic data for series maintained by Craig Everett ().