Business angels and firm performance: First evidence from population data.

ABSTRACT: Business angels dominate early-stage investment in firms, but research on their effects on firms is scarce and limited by sample selection. To address sample selection, we propose using population data and we develop an algorithm for identifying business angel investments in such data. We illustrate this novel approach by applying it to detailed and longitudinal total population data for individuals and firms in Sweden. In our application, we focus on a subset of business angels-active business angels who are themselves successful entrepreneurs with a profitable exit. We then study active business angels' effects on firm performance, using population data. Employing a quasi-experimental estimator, we find that the business angels invest in firms that already perform above par. There is als

SUBMITTER: Lodefalk M 

PROVIDER: S-EPMC10062610 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature