When Entrepreneurs Meet Financiers: Evidence from the Business Angel Market

Angela Cipollone () and Paolo Giordani

No 1601, Working Papers CELEG from Dipartimento di Economia e Finanza, LUISS Guido Carli

Abstract: This paper estimates the process of search and matching between entrepreneurs and financiers in the business angel (BA) market. We hand-collect a new dataset from the BA markets of 17 developed countries for the period 1996-2014, and we estimate the aggregate matching function expressing the number of successful deals as a function of the number of potential entrepreneurs and of business angels. Empirical findings confirm the technological features assumed in the theoretical literature: positive and decreasing marginal returns to both inputs (stepping on toes effect), technological complementarity across the two inputs (thick market effect) and constant returns to scale. We discuss the theoretical and policy implications of these findings.

Keywords: Entrepreneurial finance; innovation; matching function; business angels. (search for similar items in EconPapers)
JEL-codes: C78 L26 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-ent, nep-fmk and nep-ino
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: When Entrepreneurs Meet Financiers: Evidence from the Business Angel Market (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:lui:celegw:1601

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