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for helpful comments and suggestions. We are indebted with Sergio Venturini at IMQ, SDA Bocconi and with Christian Brownlees at NYU Stern School of Business Volatility Insititute for support and help in data analysis. We thank Factset and Borsa Italiana for providing additional data. We are especially greateful to the editor (Martin Walker) and an anonymous referee. The authors acknowledge financial support from MIUR-Università Bocconi Ricerca di Base 2005. The ideas expressed in the paper do not necessarily reflect those of the authors' affiliation. Any errors remain our own.

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target prices , analyst recommendation , security analysis ,

This paper provides preliminary evidence on the effects of membership in an angel group or network (AG/BAN) on the investment choices of business angels. Using a proprietary dataset containing qualitative and quantitative information on 810 angel or angel-group backed investments on 619 companies by 330 unique business angels from 2008 to 2014, we show that AG/BAN membership generates valuable information, networking, monitoring and risk reduction effects, which ultimately affect the amount of personal capital committed by each angel investor and their equity stake in the investee companies. These results extend our knowledge of the investing behavior and characteristics of business angels, a funding source that is rapidly gaining prominence in support of new ventures and the development of the global economy.