The Consequences of Entrepreneurial Finance: Evidence from Angel Financings
Author(s)Kerr, William R.; Lerner, Josh; Schoar, Antoinette
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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.
DepartmentSloan School of Management
Review of Financial Studies
Oxford University Press on behalf of The Society for Financial Studies
Kerr, W. R., J. Lerner, and A. Schoar. “The Consequences of Entrepreneurial Finance: Evidence from Angel Financings.” Review of Financial Studies 27, no. 1 (January 1, 2014): 20–55.
Author's final manuscript
NBER Working Paper 15831