The globalization of angel investments: Evidence across countries
Author(s)Lerner, Josh; Schoar, Antoinette; Sokolinski, Stanislav; Wilson, Karen
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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.
DepartmentSloan School of Management
Journal of Financial Economics
Lerner, Josh et al. "The globalization of angel investments: Evidence across countries." Journal of Financial Economics 127, 1 (January 2018): 1-20. © 2017 Elsevier B.V.