Review of Financial Studies Vol. 27 No. 1 2014
The Consequences of Entrepreneurial Finance: Evidence from Angel Financings
Abstract
This article documents the fact that ventures funded by two successful angel groups experience superior outcomes to rejected ventures: They have improved survival, exits, employment, patenting, Web traffic, and financing. We use strong discontinuities in angel-funding behavior over small changes in their collective interest levels to implement a regression discontinuity approach. We confirm the positive effects for venture operations, with qualitative support for a higher likelihood of successful exits. On the other hand, there is no difference in access to additional financing around the discontinuity. This might suggest that financing is not a central input of angel groups.
- Volume
- 27
- Issue
- 1
- Pages
- 20-55
- Sources
- bibtex:phds-export.bib