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We explore a well-known instance of fast decision making under high uncertainty, venture capital (VC) opportunity screening. We analyze a sample of 722 funding requests submitted to an American VC firm and evaluate the influence of the form of the submission and content of business planning documents on VC funding decisions. We improve on prior literature by a) using a large sample of known representativeness, b) relating request characteristics to actual VC decisions, and c) developing an inferential logic that takes account of the multiple sources of information to which VCs have access. We find that the presence of planning documents and some information contained therein are weakly associated with VC funding decisions. Based on our inferential strategy, we find that this information is learned independently of its inclusion in the business planning documents. Copyright © 2009 John Wiley & Sons, Ltd. [ABSTRACT FROM AUTHOR]

The contraction in venture capital has created new opportunities for angel investors in traditional venture capital markets where, previously, angels have struggled to get a foothold. Angels and the growing number of angel networks are increasingly filling the $US500 000 to $US2 million funding gap left by venture capitalists who have fled the early stage space for more secure later stage investments. Angels' increasing visibility in venture capital markets creates additional opportunity for angels to become co-investors in venture capital-led deals. However, the emerging partnership between angels and venture capitalists does not take place easily in spite of the market forces driving the two together. There are gaps in information that create inefficiencies in the angel-VC market. A critical need has arisen for intermediaries to facilitate interaction between angels and venture capitalists, particularly in under-served markets. Without these intermediaries, the role angel investors have to play in rejuvenating venture fund markets will go largely unfulfilled. [ABSTRACT FROM AUTHOR]