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This article studies how changes in investor protection regulations affect local entrepreneurial activity, relying on the heterogeneous impact of a 2011 SEC regulation change on the definition of accredited investors across U.S. cities. Using a difference-in-differences approach, I show that cities more affected by the regulation change experienced a significantly larger decrease in local angel financing, entrepreneurial activity, innovation output, employment, and sales. I find that small business loans and second-lien mortgages became entrepreneurs' partial substitutes for angel investment. My cost-benefit analysis suggests that the costs of protecting angel investors through the 2011 regulation change outweigh its benefits. [ABSTRACT FROM AUTHOR]

Commercializing technological innovations is a strategic goal in entrepreneurial ventures and established firms. A fundamental decision that remains understudied in this context is the form in which the innovation is to be commercialized. The authors term this decision the firm's "product-form strategy" for the innovation. In Study 1, they employ a theories-in-use approach and, using in-depth interviews and field observations with technology entrepreneurs and angel investors, develop a theory of product-form strategy—to market the innovation as know-how, a component, or a system—and identify the primary drivers of this choice. The theory is tested using a multimethod, multicontext approach. In Study 2, the authors use proprietary investment proposals generated by entrepreneurial ventures when they seek support from angel investors. In Study 3, they test the theory using video transcriptions of technology proposals from the television show Shark Tank. In Study 4, the authors assess the internal validity of the theory with active angel investors as subjects. They find consistent support for their theory and conclude with implications for theory and managerial practice. [ABSTRACT FROM AUTHOR]

Funding is an essential factor for the viability and growth of startups. As a result, business angels play a crucial role in providing financial support to these business companies, particularly those that are innovative and have significant potential for growth. This study sought to determine the role business angels play in the early-stage financing of startups. Specifically, the study looked at the value-added services provided by business angels, business angel funding impact on startup survival rates, the effectiveness of business angel networks' impact on facilitating startup funding, and business angels' contribution to the development of entrepreneurial ecosystems beyond financial investment for startups. This study adopted a systematic literature review methodology, employing key theoretical methods such as analysis, synthesis, comparison, and induction to assess the role business angels play in the early-stage financing of startups. The findings show that business angels' expertise, networks, and mentorship emerge as critical value-added startup services. Similarly, it was found that business angel funding positively influences startup survival; however, other factors also influence this impact. Moreover, the results show that business angel networks play a significant role in facilitating startup funding. Furthermore, beyond financial investment for startups, it was found that business angels contribute significantly to the development of entrepreneurial ecosystems, including prioritizing the contributions of ecosystem builders in startup screening, access to mentoring, and entrepreneurial education. The study concluded that business angels play a positive role in the early-stage financing of startups. [ABSTRACT FROM AUTHOR]

Purpose: This paper aims to investigate how social media support startups in accessing international markets and interacting with foreign customers and stakeholders, focusing primarily on the social network LinkedIn. Design/methodology/approach: Given the explorative research aim, the paper adopts a multiple case study approach, analyzing seven Italian food tech startups. 15 semi-structured interviews were conducted, also involving startup accelerators and a business angel to deepen the knowledge on the investigated phenomenon. In addition, a content analysis of the LinkedIn pages of the seven selected startups was conducted using NVivo 14 software. Findings: The results of this study show that social media support startups to (1) diffuse brand awareness in international markets, (2) position their offering abroad and (3) develop relationships with international stakeholders to penetrate the local business. Furthermore, the main challenges and difficulties related to the use of social media by startups for these purposes were identified. Practical implications: This study provides useful managerial implications to enable startups to strategically use social media to access international markets and connect with key foreign networks. Also from a policy perspective, incentives to support the expansion and consolidation of startups into international markets are crucial. Originality/value: Although a vast literature has dealt with internationalization strategies, this study clarifies the role of social media in changing these dynamics speeding up startups' access to foreign markets and identifying key local stakeholders. [ABSTRACT FROM AUTHOR]

Venture capital (VC) plays a vital role in fostering revolution and entrepreneurship in emerging economies. However, attracting VC investments remains a significant challenge for startups in these markets. This study investigates the macro and micro factors influencing VC attraction in the Bangladeshi startup ecosystem, employing a mixed‐methods approach. A systematic literature review was performed to recognize the key factors influencing VC attraction in emerging markets. Qualitative interviews with 20 stakeholders, including startup founders, investors, and policymakers, were undertaken to gain insights into the challenges and opportunities for VC attraction in Bangladesh. Quantitative analysis of secondary data on VC investments and startup characteristics was executed to examine the associations connecting the identified factors and VC investment amount. The findings reveal that government policies, human capital availability, and informal institutions are critical macro factors influencing VC attraction, while founder and team characteristics, business model and scalability, and traction and validation are key micro factors. The study contributes to the literature on VC in developing economies by providing a comprehensive examination of the interplay of institutional, human capital, cultural, and startup‐specific factors shaping VC investment decisions. The findings have important implications for policymakers, investors, and entrepreneurs seeking to foster a more vibrant and sustainable startup ecosystem in Bangladesh and beyond. The research underlines the need for a holistic approach to addressing the challenges and leveraging the opportunities for VC attraction in emerging markets. [ABSTRACT FROM AUTHOR]

Copyright of Journal of Small Business & Entrepreneurship is the property of Routledge and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Entrepreneurship contributes substantially to the modernization and commercial development of an economy. Access to financial resources is key to the successful operation of new ventures which is arrested by COVID-19. Therefore, the present study aims to address the architecture of entrepreneurial finance since the inception of COVID-19. The research adopts a Systematic literature review approach to study the 127 articles chosen for analysis. The findings reveal the usage of novel sources of finance such as crowdfunding, and Initial Coin Offerings during COVID-19. Apart from this, the research also encapsulates the contributions of the articles on venture capital, P2P lending, and angel finance. Also, the study highlights promising avenues for future research focusing on different financing options and drivers of financing choices. [ABSTRACT FROM AUTHOR]

Equity crowdfunding has been gaining more and more relevance as an alternative way for entrepreneurs to raise capital. This paper examines the impact of retained equity, business angel backing, grants and intellectual property rights on the success of equity crowdfunding. Using data from Crowdcube, one of the leading equity crowdfunding platforms in the world, we obtain 473 pitches within the period from March 2017 to February 2020. We apply three empirical methods to analyse our data set: logistic regression, multiple linear regression and negative binomial regression. By running univariate test and several regression analyses, we find that retained equity has a significantly negative impact on funding success; also, the support of business angels helps entrepreneurs to achieve a funding success. While winning grants is more likely to attract investors, there is no direct evidence associated with funding success. Furthermore, it turns out that intellectual property rights are not relevant for funding success. In an extension, we re-examine our analysis in the light of the Corona crisis by analysing 95 pitches from March to November 2020. We find no structural changes in relevance of the success factors. [ABSTRACT FROM AUTHOR]

The study of entrepreneurial incentives among students is a highly relevant issue because it is of utmost importance for the economic development of the country to cultivate generations of entrepreneurs who will create high-value technological startups and contribute to the transformation of Georgia into a technological hub, a goal that we have been calling a priority for years. In recent years, there has been a tendency among young adults to show entrepreneurial initiative, although this is modest compared to what could truly change the image of the country. Funds and angel investors have emerged in the country, ready to invest in interesting business projects with global potential. In this process, the role of universities could be invaluable. The primary obstacle that Georgia's and Portugal's education systems are still facing is incorporating entrepreneurial skills into formal and vocational education. Scant is the rundown of colleges that have coordinated this new test in their educational programs. The region is characterized by precarious and unsystematic skill-based professional schooling, reflecting inadequate funding initiatives lacking sustainability. The article studies the factors influencing students' entrepreneurial incentives in Georgia and Portugal, identifies the interests and opportunities of Georgian and Portuguese university students in starting a business, and discusses the best foreign practices for encouraging students' entrepreneurial activity. The article reports a study, based on a survey, which identified the main facilitating and hindering factors that influence students' entrepreneurial incentives. The paper also analyzes the environment supporting students' entrepreneurial activities in Georgia and Portugal, discusses the possibilities of finding financing, and identifies the main obstacles that students face when starting a business. [ABSTRACT FROM AUTHOR]

Despite increasing attention to sustainability as a source of new business opportunities, current research on new ventures has hardly considered this factor with respect to access to funding. This paper examines the role of new venture sustainability signals on business angels' willingness to invest. Specifically, it considers the effects of third‐party sustainability certification and the self‐proclaimed label of sustainable entrepreneurship as congruent reputational signals for inducing angel investors' willingness to invest. Three studies were conducted using a 2 × 2 between‐subject experimental design on certification and label conditions, respectively, in two samples from the Amazon MTurk crowdsourcing marketplace and one from business angels. Results show that early‐stage ventures would use such signals in their sustainability exemplification strategy to convey quality and prestige and eventually improve their chances of raising business angel funding. Implications for theory and practice are discussed. [ABSTRACT FROM AUTHOR]

Despite the pervasive influence religion has on society, the role of religion in angel investor decision-making remains unknown. This study tests a model of how religion – both as a guiding institutional logic and a personal religious belief – influences angel investor evaluations. Drawing on the similarity attraction paradigm and expectancy violation theory, two scenario-based experiments find religion has a persistent but nuanced influence on investor evaluations. Generally, religious claims are a double-edged sword, either repelling or attracting angel investors. Specifically, faith-driven investors form positive evaluations of the venture but only when these evaluations are mediated by entrepreneur authenticity. By comparison, traditional angel investors form negative evaluations when religious claims are present, except for when angel investor religiosity is high. This suggests that faith-driven and traditional angel investors use different bases for evaluating entrepreneurs and ventures. Overall, our results have important implications for understanding the theological turn to entrepreneurship by finding religion as a double-edge sword, a multilevel influence, and a cognitive mechanism within investor decision-making. Plain English Summary: This research analyzes angel investor evaluations of religious claims made by entrepreneurial ventures. We conduct two experimental studies – one with faith-driven angel investors and another with traditional angel investors – and find religious claims are a double-edged sword. Our findings suggest that the dominant institutional context, either an economic return on investment or a religious mission, will drive whether investors resonate with religious claims made about the venture and entrepreneur. Interestingly, we find that religious claims are not universally evaluated and show when repelling effects are mitigated or aligning effects are not as strong as expected. Our results suggest religion has both positive and negative influences in angel decision-making, occurs at multiple levels, and is driven largely by beliefs rather than practices. [ABSTRACT FROM AUTHOR]

Purpose: The aim of this study is to understand the levels (i.e. mild vs intense) of task conflict (TC) expressions between angel investors and entrepreneurs at the post-investment stage and how it affect angel investors' follow-on investment intentions with the same entrepreneur. Design/methodology/approach: Survey data was gathered from 71 angel investors in China. Mplus was used to test the proposed research model. Findings: This study found that angels perceive affective conflict (AC) when engaged in intense TC, unlike the case for mild TC expressions. Furthermore, the analysis shows that, unlike mild TC expressions, intense TC expressions impede angels' reinvestment intentions when they perceive ACs. Other results indicate that when angels perceive that entrepreneurs are not open to coaching, the prominence of mild TC expression is sharply mitigated and becomes as detrimental as intense TC expressions. Research limitations/implications: This study only focused on one specific aspect of the angel–entrepreneur post-investment relationship: The effect of their TC expressions on angels' reinvestment intentions. By no means do the authors imply that TC expression in the angel–entrepreneur post-investment relationship is the only factor that matters to angel investors in their follow-on investment intentions with the same entrepreneur. Practical implications: The findings suggest that entrepreneurs should pay careful attention to TC that may arise between them and their financiers. TCs are not entirely detrimental, but their negative effect might depend on how they are expressed. An appropriate level of TC may also improve enterprise performance and collaboration. Thus, angels and entrepreneurs should set clear goals and performance standards, where task interactions mainly focus on the goals and expected outcomes. Originality/value: Prior to this study, little was known about whether all TCs potentially lead to ACs. By distinguishing between levels (i.e. mild vs intense) of TC expressions between angels and entrepreneurs, this study adds a novel aspect to it by showing that TC, in and of itself, does not necessarily lead to AC but can lead to AC once its intensity grows. [ABSTRACT FROM AUTHOR]

Start-ups are increasingly using social media to signal quality and provide information to potential investors. However, the effectiveness of social media on venture capital (VC) financing is likely to be heterogeneous, differing by demographic and network characteristics of the founders. In this paper, we examine whether social media use can improve funding outcomes for firms founded by women and by other people also lacking connections to the investor network, two groups that face greater difficulties in securing VC financing. Using Twitter data and data on VC investment in start-ups from Crunchbase, we explore the interaction effect between Twitter usage and gender and between Twitter usage and the network constraint measure. Overall, we show that social media can mitigate some disparities in financing experienced by these firms through improving information access. We find that this effect is stronger for first-time entrepreneurs than for experienced ones, stronger for attracting new investors than repeat ones, and stronger in more competitive markets. Collectively, these results suggest that social media could primarily help women and less connected individuals obtain financing by alleviating information asymmetry between founders and investors. This paper was accepted by D. J. Wu, information systems. Funding: The authors thank Wharton Mack Institute of Innovation Management for funding support. Supplemental Material: The data files and online appendix are available at https://doi.org/10.1287/mnsc.2023.4728. [ABSTRACT FROM AUTHOR]

The article seeks to study the Legal Framework for Startups by comparing its original bill (PL 146/2019) and the sanctioned version, Complementary Law 182/2021. The main practical changes to startup entrepreneurship are analyzed, as well as the conspicuous absences. Positive points are made about reducing bureaucracy and asset liability. Criticism is leveled at the failure to improve the tax regime for angel investors and the elimination of stock options. The data was analyzed using the deductive method, through the monographic procedure, using the bibliographic research technique in books, scientific articles and electronic sites. It was concluded that the advances are positive, but insufficient to promote Brazilian socio-economic development. [ABSTRACT FROM AUTHOR]

Copyright of Contaduría y Administración is the property of Facultad de Contaduria y Administracion-Universidad Nacional Autonoma de Mexico and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

People well known to the general public are increasingly acting as business angels (BAs) for young and innovative ventures worldwide. These BAs are less known for their venture evaluation skills and often do not have a professional reputation as investors. The signaling function of these well-known investors could therefore be less relevant for founders because of a limited quality assurance function. Nonetheless, a venture's affiliation with a well-known BA may still positively alter the quality perceptions of various stakeholders because the BAs can put their reputation in other areas of life at risk, provide an easy-to-interpret and fluent cue to the general public, and improve the observability of the signal. Using a sample of more than 2,900 early-stage ventures that made a venture pitch during the Canadian, German, U.K., and U.S. versions of the reality TV show Dragons' Den, we find that BAs' degree of being known has a positive impact on target firm survival, web traffic, and sales. The impact of BAs' general degree of being known is particularly strong if the congruency between the investors and the target ventures is high. These effects exist over and above potential selection effects, the professional reputation of the BA, and the greater financial resources of a funded venture. The empirical findings indicate that well-known BAs can have a positive effect on venture performance and that founders should consider not only the professional reputation of BAs but also the degree to which they are known to a general audience. [ABSTRACT FROM AUTHOR]

PURPOSE: In both theory and practice, the entrepreneur's prior experience is considered to be one of the most important human capital factors affecting venture performance. Nonetheless, the research on the effect of experience on venture performance has produced inconclusive findings. The literature explaining this inconclusiveness is sparse, but several determinants have been identified, such as the variability in the conceptualization and measurement of experience and performance, age of the investigated ventures, types of industry, or size and composition of venture management. The inconsistency of these features across primary studies makes it difficult to compare the results and to integrate findings. METHODOLOGY: This meta-analysis reviews and summarizes 80 primary studies in order to investigate the relationship between entrepreneur's experience and venture performance. We investigated the effect of five determinants of this relationship, namely the type of experience, type of performance, venture age, size of managerial team, and composition of managerial team. A random effect model was applied and the correlation coefficient was used as an indicator of effect size. FINDINGS: The study found that experience positively affected venture performance, although the magnitude of the effect was rather small. Venture performance showed to have the strongest significant relationship with start-up experience, followed by industrial, working, and managerial experience. International, functional, and entrepreneurial experience had a non-significant effect on venture performance. Moreover, the effect of experience on venture performance was not significant for older ventures. Experience significantly affected two types of venture performance, namely the size of venture and profitability, while the effect on growth was non-significant. Finally, of all the types of venture management, the experience of owner-inclusive entrepreneurial teams had the greatest effect on venture performance. IMPLICATIONS: Investor practitioners may find it helpful to assess entrepreneurs' experience within a broader context, taking account of the types of experience the entrepreneur possesses. Entrepreneurs' international, functional, and entrepreneurial experience should be considered very carefully, as they had a non-significant effect on venture performance. In contrast, having experience of founding a venture or of a particular industry seems to provide more value than experience of doing business internationally, or being in business for many years. Another important aspect that investors and venture capitalists should take into account is the size and composition of the entrepreneurial team and the extent to which the venture proposal reflects the different types of experience the team members possess. ORIGINALITY AND VALUE: The study contributes to the human capital literature by firstly attempting to examine systematically the overall magnitude of the relationship between entrepreneur's experience and venture performance. It also contributes by investigating the determinants of the relationship between experience and venture performance. It summarizes and combines previous inconclusive findings about the impact of different types of experience on different venture performance outcomes. [ABSTRACT FROM AUTHOR]

Startup selection is an essential mechanism of how accelerators create value. Through in-depth case studies of 10 accelerators in Turkey, our research explores the selection process in accelerators. Our findings indicate that accelerators overcome their context's extreme uncertainty by involving various actors in the selection process and reducing the information asymmetries for investors and startups. Accelerators tend to select effortlessly coachable startups, willing to collaborate with accelerators, mentors, or other actors, and passionate enough to overcome the pressure of creating a business at a fast pace. Our research also exhibits that the selection process serves startups by directing and training them to transmit the right signals to receivers, primarily investors. Accelerators prefer to work with entrepreneurial teams that are coachable, passionate, and collaborative to vibrate the right signals. Similarly, the accelerators' selection process helps investors by decreasing signaling noise and mitigate information asymmetry. By doing so, accelerators contribute to a well-functioning and more effective entrepreneurship ecosystem. [ABSTRACT FROM AUTHOR]

How do business angels assess a prospective entrepreneurial firm when they make an investment decision? This article examines a central question that informal venture capitalists have been struggling with for decades: What early stage decision making criteria do investors define and apply to reduce the volume of potential deals to a more manageable size? Based on semi-structured interviews with business angels in an emerging market, we show that investors are focused on the industry structure and product features, on the other side, our results also suggest a very strong support for the personality of the entrepreneur and management team. More specifically, entrepreneur trustworthiness is an essential element affecting an investor's decision to close a deal. Business angels set requirements in terms of the entrepreneur's equity stake in the start-up and monitoring tools to prevent the failure of investee firms. Our findings suggest that if there are warning signs that the project is in an existential crisis, most of the investors will reject their participation. We believe that our empirical results support both researchers and practitioners to establish a better understanding between the well-developed financial theories and the underresearched informal venture capital market in a Central and Eastern European country. [ABSTRACT FROM AUTHOR]

We show that information aggregation in primary financial markets fails precisely when investors hold socially useful information for screening projects. Being wary of the Winner's Curse, less optimistic investors refrain from making financing offers, since their offers would be accepted only when a project is unviable. Their information is therefore lost. The Winner's Curse and associated information loss grow with the number of informed market participants, so that larger markets can lead to worse financing decisions and higher cost of capital for firms seeking financing. Precommitment to ration fundraising allocations, collusive club bidding, and shorting markets can mitigate the inefficiency. [ABSTRACT FROM AUTHOR]

Research Summary: Recently, the venture capital (VC) industry has experienced the entry of several new capital providers. Using US data on investors and their portfolio startups from 2000 to 2022, we document the emergence of a new type of investors: the micro VC. Our analysis reveals that micro Venture Capitalists (VCs) have an idiosyncratic investment strategy, which differs from traditional VCs. Compared with these investors, micro VCs invest in riskier startups, that is, early‐stage ventures initiated by less experienced founders; yet, micro VCs are less likely to syndicate, stage their investments, and replace the startup founders. Additionally, startups funded by micro VCs are less likely to experience successful exits than those backed by traditional VCs. These results can be traced to a mix of smaller capital endowments, less sophisticated limited partners, and lesser human capital of which micro VCs dispose, and that may induce them to spread their thin capital across many investments to maximize returns. Our analysis also uncovers important differences in the strategies pursued by micro VCs and business angels. Managerial Summary: The VC industry is increasingly populated by a variety of investors with disparate characteristics and objectives. One such type of investors is represented by the so‐called micro VC firms. These are VC firms that manage funds typically below $50 million and focused primarily on investing in founder‐led startups. We leverage comprehensive VC data in the United States to answer three questions: (1) Who leads micro VC firms? (2) How do micro VC firms invest? (3) How do startups backed by micro VC perform? We find that micro VC firms are often led by relatively inexperienced entrepreneurs with little VC experience, and these firms are supported by less sophisticated limited partners. Although micro VC firms invest in riskier startups, they are less engaged in syndication and investment staging than traditional VC firms. Finally, micro VC‐backed startups have a lower probability of successful exit as compared with those backed by traditional VC firms. Collectively, our results suggest that micro VCs differ from traditional VCs beyond being "micro." [ABSTRACT FROM AUTHOR]

Objective: The objective of the article is to examine the role of foreign venture capital and foreign business angels in companies' early internationalization based on the example of Polish ICT start-ups. Research Design & Methods: We based the scientific argument on an analysis of the existing state of knowledge in this area and the empirical research conducted among 220 Polish start-ups, which founded our logistic regression model. Findings: Based on the study, a positive relationship exists between the involvement of foreign venture capital funds in start-ups and their early internationalization. Implications & Recommendations: Start-ups should cooperate with foreign institutions, such as venture capital funds, as their knowledge and experience can be a source of start-ups' early internationalization. We recommend that scholars conduct further in-depth panel studies on the impact of foreign investment funds on the early internationalization process. Contribution & Value Added: The article covers research yet to be undertaken in research analyses in early internationalization and can serve as a starting point for further in-depth studies of the phenomenon, also based on start-ups from other countries. [ABSTRACT FROM AUTHOR]

To understand the ethical issue of gender inequality in entrepreneurial financing, we examine the effect of angel investors' political ideology, the conservatism–liberalism continuum, on their investments in women-owned ventures. We propose that more conservative angel investors tend to have a lower percentage of investments in women-owned ventures in their portfolios. Moreover, drawing on the gender role congruity theory, we show that when investing in women-owned ventures, more conservative angels favor women-owned ventures with a higher percentage of male co-founders and operating in women-dominated industries. Our analysis, based on a longitudinal sample of 172 angels from 2010 to 2019, supports these hypotheses. Our study contributes to the literature by highlighting angel political ideology as a critical antecedent of the gender disparity in entrepreneurial financing. [ABSTRACT FROM AUTHOR]

This article explores China's angel investment policy and its success in attracting angel investment, particularly in the technology sector. The Chinese government has implemented various measures, including tax incentives and investment cooperation funds, to support and promote angel investment. The article provides suggestions for the government to further enhance the role of angel investments in developing start-ups. It also discusses the importance of education programs for angel investors and the challenges and potential of angel investment in China. Overall, the article contributes to the research on start-ups and angel investment, offering lessons for other countries. [Extracted from the article]

Building on social-psychological insights into social perception and judgment and empirical findings from the entrepreneurship literature, we propose that early-stage equity investors look at two main dimensions to assess entrepreneurs seeking early-stage financing: competence and cooperativeness. In all, 84 angel investors and venture capitalists active in Europe participated in a conjoint experiment. The results show that investors prioritize entrepreneurs' competence over their cooperativeness. Entrepreneurs' competence is even more appealing to investors when combined with coachability. We find that entrepreneurs can compensate for a lack of experience by demonstrating solid market knowledge and appearing to be coachable. Furthermore, the results suggest that investors differ in their consideration of entrepreneurs' cooperativeness, but not competence, when making investment decisions—a finding that is conditional on investors' usual level of involvement in their portfolio ventures. We discuss these findings from a theoretical and practical perspective. [ABSTRACT FROM AUTHOR]

We investigate the role of entrepreneurs' human capital on the potential of newly created ventures to receive equity funding from Accelerators and Business Angels using a resource-based approach to entrepreneurship theory. Using data from 10,563 for-profit innovative ventures, we find significant differences between those two groups. More specifically, formal education and founding experience of the entrepreneurial team is positively associated with the likelihood of the team to receive equity from Angels but negatively associated with the likelihood of the team to receive equity from Accelerators. Overall, our results are in line with the theoretical argument that human capital signals are important in reducing the information asymmetries faced by angels and ultimately driving entrepreneurs' success in securing angel funding, but our results also suggest that some aspects of human capital signals do not contribute to the entrepreneur's success in receiving accelerator funding. Our findings have important repercussions for the quality of design and operation of both private and state supported programmes and accelerator managers. [ABSTRACT FROM AUTHOR]

This paper investigates the performance effects of cross-border business angel investments. Examining 815 investments on a business angel investment platform, we find an inverted U-shaped relationship between (geographic and cultural) distance and investment returns. We further show that business angels in large syndicates are less sensitive to the costs of both geographic and cultural distance and earn consistently higher returns. Our study contributes to the literature on business angel internationalization and highlights the role of co-investment networks: network resources allow business angels to mitigate transaction costs associated with cross-border investments and improve their investment returns. [ABSTRACT FROM AUTHOR]

University spinoffs build on strong science, which renders them a significant source of radical innovation. Radical innovation entails uncertainty as there is no market to target, which calls for individuals and organizations that bridge the gap between embryonic inventions and opportunity yet to exist. Recognizing that the commercial success of university spinoffs hinges on the entrepreneurial ecosystems they are embedded in, this study establishes an unbalanced panel (2015–2020) to analyse interrelationships among the key factors in the university spinoff ecosystem: science, innovation, and venture financing. Estimation results reveal that, first, the quality of science increases the probability of university spinoffs acquiring risk money from venture capitalists and business angels. Second, the quality of innovation has a positive effect on venture capital funding. Third, venture capital funding positively affects sales growth of university spinoffs, which corroborates the coach function of entrepreneurial intermediaries that offer startups hands-on support. [ABSTRACT FROM AUTHOR]

Angel investor tax credits are used globally to spur high‐growth entrepreneurship. Exploiting their staggered implementation in 31 U.S. states, we find that they increase angel investment yet have no significant impact on entrepreneurial activity. Two mechanisms explain these results: crowding out of alternative financing and low sensitivity of professional investors to tax credits. With a large‐scale survey and a stylized model, we show that low responsiveness among professional angels may reflect the fat‐tailed return distributions that characterize high‐growth startups. The results contrast with evidence that direct subsidies to firms have positive effects, raising concerns about promoting entrepreneurship with investor subsidies. [ABSTRACT FROM AUTHOR]

This study adopts a signaling theory perspective to examine whether and how crowdfunding (relative to angel financing) influences subsequent venture capital (VC) investments in startups. We used a bivariate probit model with propensity score matching to address the potential endogeneity of the initial funding choice. Subsequently, we found that crowdfunded startups have a lower chance of receiving VC funding than angel-financed startups and that the effect is more negative for startups located outside of startup cluster cities. We show that corporate VCs, unlike independent VCs comprising the majority of VCs, favor crowdfunded startups. Our study contributes to the literature on crowdfunding, startup finance, and the transformative effects of IT-enabled platforms. This study further discusses the practical implications of crowdfunding in startup finance ecosystems. [ABSTRACT FROM AUTHOR]

Underpinning this instrumental case study is an effectuation lens. It investigates how a firm's governance affects decision-making within international new ventures (INVs), which rapidly withdrew from markets abroad, regarding their re-internationalisation activities. Interviews with founding owners, exhibiting growth-oriented objectives, provide unique insights regarding a combination of effectuation and causation-oriented decision-making. In comparison to earlier studies that focus on the role and mind-set of the founding management team, findings suggest stakeholders like angel investors may exhibit an influence on certain INVs' internationalisation decisions. Some decision-makers view risks/rewards against objectives in subjective ways like 'loss of credibility' and the 'fear of missing out,' rather than simply economic terms like growth. New light is shed on the importance of decision-makers validating internationalised business models and exhibiting an ability to pivot product-market strategies. Non-linear international scale-up behaviour may include a temporary domestic market focus and potentially re-internationalising to different countries targeted prior to de-internationalisation. [ABSTRACT FROM AUTHOR]

Copyright of Journal of International Business Studies is the property of Springer Nature and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

Compared to scholarship focused on venture capital, we know less about angel investing and, in particular, less about how angels operate across institutional environments. Given the importance of angels within early-stage entrepreneurial investment growing globally, the field of angel governance is poised for further investigation. Thus, in this paper, we begin the conversation on angels and institutions and provide a framework for studying the post-investment governance role taken by angels amid institutional variation. First, we provide a review of the research conducted on angel-centered corporate governance. We then explore how the regulative, normative, and cultural-cognitive institutional domains may influence angel governance arrangements. Within these domains, we isolate how the extent, frequency, and mode of angel engagement with the target venture can be shaped by the institutional environment. [ABSTRACT FROM AUTHOR]

We investigate the impact of the angels' share—the angel investors' proportion of ownership—on entrepreneurial performance. We argue that below the blockholder level of ownership, the angels' share is associated with greater innovation but lower market performance. In contrast, we predict that above the blockholder level of ownership, the angels' share is associated with lower innovation but higher market performance. We test this proposition across two independent samples of US-based ventures. In study 1, we analyzed data from the Kauffman Firm Survey (KFS, 2004–2011) to substantiate the angels' share hypothesis. Moreover, we show how angels' share and family investors interact in new ventures. In study 2, we analyzed data from the Entrepreneurship Database Program (EDP, 2013–2018) to check the robustness of the angels' share hypothesis. Both studies point to the importance of ownership thresholds in predicting angel investor activism in the strategy of new ventures. Plain English Summary: We find that when angel investors own a substantial share of a new venture (i.e., blockholder ownership), there is an increased likelihood of angel investor activism and a greater strategic focus on market performance in the new venture. In contrast, when the angels' share is below the blockholder level, there is a decreased likelihood of angel investor activism and a greater strategic focus on innovation. However, these relationships depend on the presence of family investors. One key implication of this study is that new firms should encourage blockholder angel investors when their primary goal is to increase ventures' market performance, though this may come at the cost of less innovation. It lends further evidence to the notion that entrepreneurs should carefully consider the composition of their funding sources in formulating their new venture strategies. [ABSTRACT FROM AUTHOR]

This research paper investigates the significance of financial accessibility for social entrepreneurship (SE) in fostering sustainable development in the Kingdom of Saudi Arabia (KSA). It commences with an exploration of the importance of SE, followed by a discussion on the obstacles social entrepreneurs encounter in securing financial resources. This paper delves into various financing avenues: government initiatives, venture capital, angel investment, crowdfunding, investor collaborations, and corporate social responsibility. Data were gathered from 300 respondents representing social entrepreneurs across diverse regions in the KSA to prioritize the factors and challenges that impede financial access for social entrepreneurs. The findings, utilizing descriptive data analysis, reveal that the primary constraint is insufficient financial infrastructure, with 25% of respondents identifying this as a significant factor. In contrast, a mere 5% of respondents cited the lack of a regulatory framework, and only 12% pointed to the dearth of field expertise as a contributing factor. In addition, 19% of respondents reported that limited awareness of opportunities is another significant obstacle. This study evaluates the critical factors affecting Saudi social entrepreneurs and provides recommendations to enhance financial accessibility, drawing on examples from leading countries in the SE domain. [ABSTRACT FROM AUTHOR]

To improve independent innovation ability, China has explored a unique form of R&D organization called the New R&D Institute (NRDI). The spillover effect of NRDIs in the region arouses curiosity about what exactly drives its innovation performance. After clarifying the NRDI concept and its characteristics, this study studies Nanjing, a typical city with the rapid development of NRDIs in China, to empirically explore the impact mechanism of NRDI development in their start‐up period. The study uses panel data from 103 NRDIs spanning 10 quarters from the third quarter of 2018 to the fourth quarter of 2020. Our analysis reveals that R&D investment, government support, research infrastructure, and angel investment have mixed impacts on the revenue, innovation, and enterprise incubation of NRDIs. Specifically, resource inputs such as R&D staff, R&D service platforms, and R&D expenditures boost the revenue growth of NRDIs. In contrast, only a few inputs play an important role in NRDIs' innovation and enterprise incubation, including service platforms, capital investment from high‐tech parks, and angel funding. The early development of NRDIs has four features. (1) It is driven more by material capital (R&D expenditure) than by human capital (R&D staff). (2) It relies more on government support rather than institution investment. (3) Research infrastructure has specific significant effects on the innovative output of NRDIs. (4) Angel investment is critical to promote technological innovation and business incubation. Most of the input elements have not yet been very effective in the innovation and incubation of NRDIs. Our research offers essential insights for understanding the innovation mechanism in NRDIs and promoting their healthy development. [ABSTRACT FROM AUTHOR]