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Journal of Financial Economics Vol. 127 No. 1 2018

The globalization of angel investments: Evidence across countries

Josh Lerner1; Antoinette Schoar2; Stanislav Sokolinski3; Karen Wilson4

1 Dana-Farber/Harvard Cancer Center · 2 Massachusetts Institute of Technology · 3 Rutgers, The State University of New Jersey · 4 Organisation de Coopération et de Développement Economiques

Abstract

This paper examines the role of investments by angel groups across a heterogeneous set of 21 countries with varying entrepreneurship ecosystems. Exploiting quasi-random assignment of deals around the groups’ funding thresholds, we find a positive impact of funding on firm growth, performance, survival, and follow-on fundraising, which is independent of the level of venture activity and entrepreneur-friendliness in the country. However, the maturity of startups that apply for funding (and are ultimately funded) inversely correlates with the entrepreneurship-friendliness of the country. This may reflect self-censoring by early-stage firms that do not expect to receive funding in these environments.

DOI
10.1016/j.jfineco.2017.05.012
Volume
127
Issue
1
Pages
1-20
Language
en
Sources
bibtex:phds-export.bib crossref openalex

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