The Consequences of Entrepreneurial Finance: Evidence from Angel Financings

Résumé

This paper documents that ventures that are funded by two successful angel groups experience superior outcomes to those that are rejected: they have improved survival, exits, employment levels, patenting, web traffic, and financing. We use strong discontinuities in the funding behavior of angels over small changes in their collective interest levels to implement a regression discontinuity approach. We confirm the positive effect of angel financing on most operations of the venture, 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.

Référence

William R. Kerr, Josh Lerner et Antoinette Schoar, « The Consequences of Entrepreneurial Finance: Evidence from Angel Financings », janvier 2011.