The Angel Investment Decision: Evidence from an Emerging Economy.

This study identifies the value influencers that early stage financiers take into consideration in their investment evaluation process based on an analysis of primary data obtained from 96 early stage financers located in India. The study uses exploratory factor analysis to identify the factors. The findings of the study reveal that entrepreneur and finance considerations are the dominating factors that influence angel investors' evaluation of early-stage startups. The former includes track record of the entrepreneur, entrepreneur's network, desire for success, honesty and integrity, while the latter includes monitoring and administrative costs, capital requirements and internal rate of return of the investments. Other influencers include competitive advantage of product/service, barriers to entry and potential for high market growth. [ABSTRACT FROM AUTHOR]