Patient capital in entrepreneurial finance: a reassessment of the role of business angel investors

Harrison, Richard T., Botelho, Tiago and Mason, Colin M. (2016) Patient capital in entrepreneurial finance: a reassessment of the role of business angel investors. Socio-Economic Review, 14 (4). pp. 669-689. ISSN 1475-1461

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The debate on patient capital, particularly in the varieties of capitalism literature, concentrates on institutions and public markets. In this paper we take an entrepreneurial finance perspective to examine the investment attitudes and behaviours of business angels. These represent the biggest source of external risk capital for new and young growing companies and therefore play a critical role in entrepreneurial ecosystems. Drawing on both a detailed review of previous research on business angel investment time horizons, investor engagement and exit behaviour and new survey evidence we conclude that only a minority of angels could be defined as being exit-centric investors. It can be concluded that the vast majority of angels are patient investors in terms of investment intentions, engagement and exit behaviour, largely by default rather than intent. Most do not consider the exit at the investment appraisal stage nor the need for patience.

Item Type: Article
Uncontrolled Keywords: varieties of capitalism,voice,corporate finance,patient capital,business angels,exits
Faculty \ School: Faculty of Social Sciences > Norwich Business School
UEA Research Groups: Faculty of Social Sciences > Research Groups > Strategy and Entrepreneurship
Depositing User: Pure Connector
Date Deposited: 24 Sep 2016 00:27
Last Modified: 21 Oct 2022 06:31
DOI: 10.1093/ser/mww024


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