Business angel post-investment activities: a multi-level review

Abstract

In this article, empirical research on post-investment activities of business angels is reviewed and conceptualized as five distinct governance processes: boundary spanning, structuring, leadership, doing, and monitoring. These processes have the potential to reduce the exposure of business angels to relational risk and market risk.The identification of these governance processes also contributes towards understanding the social aspect of business angels' post investment involvement. In particular, it is shown how the recognition of the cognitive/institutional dimension opens up for new questions about post-investment involvement. Finally, it is proposed that venture performance can be enhanced in practice if business angels and venture members develop skills that are connected to the governance processes.

Success drivers of online equity crowdfunding campaigns

“…Business angels are also motivated by a possibility to become part of new ventures' growth processes, by an ability to help and mentor entrepreneurs, and by a feeling of enjoyment (Harrison and Mason, 2007;Morrissette, 2007;Sudek, 2006;Van Osnabrugge, 2000;Wilson and Testoni, 2014). Indeed, while business angels differ vastly in their level of involvement in the companies they have invested in, many take relatively active roles as board members, consultants, or mentors (Fili and Grünberg, 2016;Sørheim and Landström, 2001).…”

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

“…We identified 10 articles on the post‐investment phase of the BA investment process, plus one study (Amatucci and Sohl, ) that we included under the research line overview of the entire investment process . Two of these studies are literature reviews (Politis, ; Fili and Grünberg, ), reporting scholarly works that examine the value‐added roles served by BAs and the governance processes of BAs’ post‐investment involvement…”

“…We identified 10 articles on the post-investment phase of the BA investment process, plus one study (Amatucci and Sohl, 2004) that we included under the research line overview of the entire investment process. Two of these studies are literature reviews (Politis, 2008;Fili and Grünberg, 2014), reporting scholarly works that examine the value-added roles served by BAs and the governance processes of BAs' post-investment involvement. 10 Research on the post-investment phase is primarily based on case studies (Mason and Harrison, 1996a;Sørheim, 2005;Macht and Robinson, 2009;Macht, 2011;Fili, 2014;Bjørgum and Sørheim, 2015).…”

“…The literature reviews by Politis () and Fili and Grünberg (), for example, concentrate on BAs’ value adding activities in the post investment phase on the basis of a limited number of papers (i.e. 14 and 29 papers respectively).…”

High Value-Added Business Angels at post-investment stages: Key predictors

“…Another issue yet to be explored is just how intensely knowledge is transferred, and whether it is possible to classify BAs according to the extent of their contributions to the projects that they fund. To date, there has been little empirical work on post-investment involvement (Fili and Grünberg, 2016; Macht, 2011b). Problems assessing the impact of BAs on investee companies relate to the availability of data, which leads to the use of potentially biased convenience samples (Fraser et al, 2015).…”