Serial Investors and Early Stage Finance

Peter Kelly and Michael Hay
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Peter Kelly: London Business School
Michael Hay: London Business School

Journal of Entrepreneurial Finance, 1996, vol. 5, issue 2, 159-74

Abstract: This study examines the early stage investment activity of UK serial investors, individuals who have made at least three private investments. Two distinct groups emerged; one which invested on their own all the time ("solo serial investors") and the other which invested with others almost exclusively ("syndicate serial investors"). Both groups had invested in a variety of industrial sectors, a majority of which were in sectors where no one in the investor group had previous direct experience. Concept familiarity appeared to be a necessary, albeit insufficient, prerequisite to the decision to invest. For a majority of the investments reviewed for both groups, the investor(s) backed individuals personally known to them, to another syndicate member, and/or to the deal referrer. When the linkage to performance is explored, both solo and syndicate serial investors are well advised to back entrepreneurs known to a least one member of the investor group.

Keywords: Serial Investors; Early Stage Finance (search for similar items in EconPapers)
JEL-codes: G24 G31 M13 (search for similar items in EconPapers)
Date: 1996
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Citations: View citations in EconPapers (6)

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