The informal venture capital market in Norway ? investor characteristics, behaviour and investment preferences

Reitan, Bjørnar; Sørheim, Roger

doi:10.1080/136910600295747

Cited by 62 publications

(54 citation statements)

References 0 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Politis and Landstro¨m (2002) found in their qualitative research of informal investors in Sweden that informal investors have commonly experienced three overall career phases: the corporate career phase; the entrepreneurial learning phase; and the integrated investment career phase. In international studies of informal venture capital, the share of investors being company-owners has ranged from 38% in Norway (Reitan and So¨rheim, 2000), 48% in Japan (Tashiro, 1999), 49% in UK (Harrison and Mason, 1992) to 69% in Sweden (Landstro¨m, 1993). In the same studies, the shares of informal investors having founding experience have been 46% in Norway, 67% in UK, and 96% in Sweden.…”

Section: Entrepreneurial Experiencementioning

confidence: 93%

“…The first generation of studies on informal venture capital have typically been descriptive (For a review, see e.g. Mason and Harrison, 2000a), focusing primarily on investor characteristics, investment activity, information channels, and involvement in investee companies in different countries including USA (Wetzel, 1981;Aram, 1989;Freear et al, 1994), UK (Harrison and Mason, 1992;Stevenson and Coveney, 1994), Sweden (Landstro¨m, 1993), Canada (Short and Riding, 1989;Riding et al, 1993;Farrell, 1998;), Finland (Lumme et al, 1996;, Japan (Tashiro, 1999), Australia (Hindle and Wenban, 1999), Norway (Reitan and So¨rheim, 2000), and Singapore (Hindle and Lee, 2002). It is common for these studies that they have estimated the size of the informal venture capital market to be multiple times the size of the formal venture capital market.…”

Section: Literature Reviewmentioning

confidence: 98%

See 1 more Smart Citation

What Drives Micro-Angel Investments?

Maula¹,

Autio

Arenius³

2005

Small Bus Econ

114

View full text Add to dashboard Cite

Despite of the significant role of informal venture capital in the financing of new entrepreneurial ventures, there is little research explaining the factors determining the propensity of individuals to make microangel investments. Building on two theoretical frameworks, a social psychological theory of planned behavior and an economic theory on the determinants of demand for risky assets in household portfolios, we develop a set of hypotheses predicting the propensity of individuals to make informal investments in new businesses owned by others. In our analysis we test whether the determinants of micro-angel investments are similar when investing in a business owned by a close family member versus more distant business. The hypotheses are tested using data from 6007 interviews of Finnish adults carried out in the Global Entrepreneurship Monitor program in 2000–2002. The findings show that the theoretical frameworks have more power in explaining investments in firms not owned by close family members. The study provides new understanding of the differences in the drivers of different types of micro-angel investments. Copyright Springer 2005household portfolios, informal venture capital, theory of planned behavior, G24, G28, M13, D14,

show abstract

Section: Entrepreneurial Experiencementioning

confidence: 93%

Section: Literature Reviewmentioning

confidence: 98%

What Drives Micro-Angel Investments?

Maula¹,

Autio

Arenius³

2005

Small Bus Econ

114

View full text Add to dashboard Cite

show abstract

“…Just to illustrate, in Great Britain, 67% of business angels invest in enterprises that are 100 miles or less from their home or work place. In Norway, it is 48% (Reitan and Sørheim, 2000). Business angels prefer to invest locally so they can visit the fi rm in which they have invested and see how things are going.…”

Section: The Fact That Business Angels Invest Personal Assets Distingmentioning

confidence: 99%

Business angels: who they really are

Ramadani

2009

Strategic Change

View full text Add to dashboard Cite

Financing is a critical issue for the survival and development of small and medium‐sized enterprises. Business angels play a key role in financing these enterprises, especially innovative ones with high growth potential. Business angels fill the gap between founders, family, and friends on one side, and institutional venture capital funds on the other side, as a financing source. Business angels invest a large amount of money in seed, start‐up, and early‐stage enterprises. Business angels are important for small and medium‐sized enterprises because they provide more than money. They are hands‐on investors and contribute their skills, expertise, knowledge, and contacts in the businesses they invest in. They are wealthy persons with great business experience, willing to invest and offer their wealth and knowledge to owners and to entrepreneurs to start or develop their businesses. Business angels like to remain anonymous, so many ideas cannot be implemented. To address this issue, many countries establish business angel syndicates and networks to facilitate the process of matching entrepreneurs and business angels. Copyright © 2009 John Wiley & Sons, Ltd.

show abstract

“…Studies have shown that informal investors have a higher emphasis on the entrepreneur than VC firms (Mason & Stark, 2004) and are most likely to invest in close geographical proximity of their home or work (Harrison, Mason, & Robson, 2010). Further, they invest at an earlier stage than VCs and other financial institutions including during the pre-commercial and start-up phase (Moen et al, 2008;Reitan & Sørheim, 2000), and have usually a lower investment capacity than VC's (Clercq et al, 2006). We expect that informal investors can be an important local financial source in the early technology development stage for pre-commercial INVs, but less likely to act as an international funding source.…”

Section: Funding Sources In the Pre-commercial Phasementioning

confidence: 99%

New ventures in an emerging industry: access to and use of international resources

Bjørgum

Moen

Madsen

2013

IJESB

View full text Add to dashboard Cite

This paper addresses international activities of young companies in the emerging marine energy industry. We build our study on interviews in eight companies combined with scientific reports and publications. The main challenges for the companies are related to financing and technology development. Our findings show that the companies may be divided in three groups: a) three technology and funding driven international ventures, b) one market driven international venture and c) four companies with limited international involvement. The short timespan between establishment and first major international activity for acquiring funding or technology competence is a distinct characteristic of the firms in the first two groups. The last group with no or limited international activity reveals an alternative development path. Our study gives insight in significant firm level differences with regard to international involvement in the pre-commercial phase of development and discusses the implications for researchers, managers and public policy.

show abstract

The informal venture capital market in Norway ? investor characteristics, behaviour and investment preferences

Cited by 62 publications

References 0 publications

What Drives Micro-Angel Investments?

What Drives Micro-Angel Investments?

Business angels: who they really are

New ventures in an emerging industry: access to and use of international resources

Contact Info

Product

Resources

About