1,019
Views
67
CrossRef citations to date
0
Altmetric
Original Articles

Determinants of long-distance investing by business angels in the UK

, &
Pages 113-137 | Published online: 06 Apr 2010

References

  • Akerlof , GA . 1970 . The market for ‘lemons’: Quality uncertainty and the market mechanism . The Quarterly Journal of Economics , 84 : 488 – 500 .
  • Aram , JD . 1989 . Attitudes and behaviours of informal investors toward early stage investments, technology based ventures and coinvestors . Journal of Business Venturing , 4 : 333 – 47 .
  • Armington , C and Acs , ZJ . 2002 . The determinants of regional variation in new firm formation . Regional Studies , 36 : 33 – 45 .
  • Atkin , R and Esiri. , M . 1993 . Informal investment – investor and investee relationship . Paper to the 16th National Small Firms Policy and Research Conference . 1993 , November. pp. 17 – 19 . Nottingham, , UK
  • Burt , RS . 1982 . Toward a structural theory of action: Network models of social structure, perception and action , New York : Academic Press .
  • Clark , C , Wilson , F and Bradley , J . 1969 . Industrial location and economic potential in Western Europe . Regional Studies , 3 : 197 – 212 .
  • Coveney , P and Moore , K . 1998 . Business angels: Securing start-up finance , Chichester : Wiley .
  • Davidsson , P , Lindmark , L and Olofsson , C . 1994 . New firm formation and regional development in Sweden . Regional Studies , 28 : 395 – 410 .
  • De Clercq , D and Sapienza , H . 2006 . Effects of relational capital and commitment on venture capitalists’ perception of portfolio company performance . Journal of Business Venturing , 21 : 326 – 47 .
  • Ehrlich , SB , DeNoble , AF , Moore , T and Weaver , RR . 1994 . After the cash arrives: A comparative study of venture capital and private investor involvement in entrepreneurial firms . Journal of Business Venturing , 9 : 67 – 89 .
  • Feeney , L , Haines , GH and Riding , AL . 1999 . Private investors’ investment criteria: Insights from qualitative data . Venture Capital: An International Journal of Entrepreneurial Finance , 1 : 121 – 45 .
  • Fiet , JO . 1995a . Reliance upon informants in the venture capital industry . Journal of Business Venturing , 10 : 195 – 223 .
  • Fiet , JO . 1995b . Risk avoidance strategies in venture capital markets . Journal of Management Studies , 32 : 551 – 74 .
  • Florida , RL and Kenney , M . 1988 . Venture capital, high technology and regional development . Regional Studies , 22 : 33 – 48 .
  • Freear , J and Jr. , WEWetzel . 1990 . Who bankrolls high-tech entrepreneurs? . Journal of Business Venturing , 5 : 77 – 89 .
  • Freear , J , Sohl , JE and Wetzel , WE Jr . 1992 . “ The informal venture capital market in the 1990s ” . In State of the art of entrepreneurship , Edited by: Sexton , DL and Karsada , JD . Boston, MA : PWS-Kent Publishing .
  • Freear , J , Sohl , JE and Wetzel , WE Jr . 1994a . The private investor market for venture capital . The Financier , 1 ( 2 ) : 7 – 15 .
  • Freear , J , Sohl , JE and Jr. , WEWetzel . 1994b . Angels and non-angels: Are there differences? . Journal of Business Venturing , 9 : 109 – 23 .
  • Freear , J , Sohl , JE and Wetzel , WE Jr. 2002 . Angels on angels: Financing technology-based ventures – an historical perspective . Venture Capital: An International Journal of Entrepreneurial Finance , 4 : 275 – 87 .
  • Fritsch , M and Schilder. , D . 2006 . Does venture capital investment really require spatial proximity? An empirical investigation . 2006 . Freiberg Working Papers No. 7 , Faculty of Economics and Business Administration, Technical University Bergakademie Freiberg .
  • Gaston , RJ . 1989 . Finding venture capital for your firm: A complete guide , New York : John Wiley .
  • Green , M . 1991 . Venture capital: International comparisons , London : Routledge .
  • Haar , NE , Starr , J and MacMillan , IC . 1988 . Informal risk capital investors: Investment patterns on the East coast of the USA . Journal of Business Venturing , 3 : 11 – 29 .
  • Hand , JRM . 2004 . “ Determinants of the returns to venture capital investments ” . Working Paper University of North Carolina .
  • Harrison , RT and Mason , CM . 1992a . “ The roles of investors in entrepreneurial companies: A comparison of informal investors and venture capitalists ” . In Frontiers of entrepreneurship research 1992 , Edited by: Churchill , NC , Birley , S , Bygrave , WD , Muzyka , DE , Wahlbin , C and Wetzel , WE Jr . Wellesley, MA : Babson College .
  • Harrison , RT and Mason , CM . 1992b . International perspectives on the supply of informal venture capital . Journal of Business Venturing , 7 : 459 – 75 .
  • Harrison , RT and Mason , CM eds . 1996 . Informal venture capital: Evaluating the impact of business introduction services , Hemel Hempstead : Prentice Hall .
  • Harrison , RT and Mason , CM . 2007 . Does gender matter? Women business angels and the supply of entrepreneurial finance . Entrepreneurship Theory and Practice , 31 : 447 – 74 .
  • Harrison , RT , Dibben , M and Mason , CM . 1997 . The role of trust in the business angel's investment decision: An exploratory analysis . Entrepreneurship Theory and Practice , 21 ( 4 ) : 63 – 81 .
  • Hindle , K and Wenban , R . 1999 . Australia's informal venture capitalists: An exploratory profile . Venture Capital: An International Journal of Entrepreneurial Finance , 1 : 169 – 86 .
  • Hudson , R . 1999 . The learning economy, the learning firm and the learning region: A sympathetic critique of the limits to learning . European Urban and Regional Studies , 6 ( 1 ) : 59 – 72 .
  • Huggins , R . 2008 . Universities and knowledge-based venturing: Finance, management and networks in London . Entrepreneurship & Regional Development , 20 : 185 – 206 .
  • Hyytinen , A and Toivanen , O . 2003 . Asymmetric information and the market structure in the venture capital industry . Journal of Financial Services Research , 23 : 241 – 9 .
  • Innovation Partnership. 1993. Extracts from a study into private investor networks commissioned by National Westminster Bank plc technology bank. The Innovation Partnership, Manchester.
  • Johnstone , H . 2001 . “ Equity gaps in depleted communities: An entrepreneurial response ” . In New technology firms in the new millennium , Edited by: During , W , Oakley , R and Kauser , S . 84 – 94 . Oxford : Pergamon .
  • Keeble , DE , Owens , PL and Thompson , C . 1982 . Regional accessibility and economic potential in the European Community . Regional Studies , 16 : 419 – 32 .
  • Keeble , D and Walker , S . 1994 . New firms, small firms and dead firms: Spatial patterns and determinants in the United Kingdom . Regional Studies , 28 : 411 – 27 .
  • Kelly , P and Hay , M . 1996 . Serial investors and early stage finance . Journal of Entrepreneurial and Small Business Finance , 5 : 159 – 74 .
  • Kelly , P and Hay , M . 2000 . Deal makers: Reputation attracts quality . Venture capital: An International Journal of Entrepreneurial Finance , 2 : 183 – 202 .
  • KPMG Management Consulting. 1993. Investment networking. Glasgow: Scottish Enterprise.
  • Landström , H . 1992 . The relationship between private investors and small firms: An agency theory approach . Entrepreneurship & Regional Development , 4 : 199 – 223 .
  • Landström , H . 1993 . Informal risk capital in Sweden and some international comparisons . Journal of Business Venturing , 8 : 525 – 40 .
  • Lengyel , Z and Gulliford , J . 1997 . The informal venture capital experience , London : Local Investment Networking Company .
  • Lerner , J . 1995 . Venture capitalists and the oversight of private firms . Journal of Finance , 50 : 301 – 18 .
  • Leyshon , A , Thrift , N and Tommey , C . 1990 . The rise of the British provincial financial centre . Progress in Planning , 31 ( 3 ) : 1 – 80 .
  • Locke , EA . 2007 . The case for inductive theory building . Journal of Management , 33 : 867 – 90 .
  • Lumme , A , Mason , CM and Suomi , M . 1998 . Informal venture capital: Investors, investments and policy issues in Finland , Dordrecht : Kluwer Academic Publishing .
  • Lynch , RG . 2003 . Estimates of income and income inequality in the United States and in each of the fifty states: 1988–1999 . Journal of Regional Science , 43 : 571 – 88 .
  • Mackay , RR . 2003 . Twenty five years of regional development . Regional Studies , 37 : 303 – 17 .
  • Mäkelä , MM and Maula , MVJ . 2008 . Attracting cross-border venture capital: The role of a local investor . Entrepreneurship & Regional Development , 20 : 237 – 57 .
  • Martin , RL ed . 1999 . Money and the space economy , Chichester : Wiley .
  • Martin , R , Sunley , P and Turner , D . 2002 . Taking risks in regions: The geographical anatomy of Europe's emerging venture capital market . Journal of Economic Geography , 2 : 121 – 50 .
  • Mason , C . 2006 . “ Informal sources of venture finance ” . In The life cycle of entrepreneurial ventures , Edited by: Parker , SC . 259 – 99 . New York : Springer .
  • Mason , CM . 2007 . “ Venture capital: A geographical perspective ” . In Handbook of research on venture capital , Edited by: Landström , H . 86 – 112 . Cheltenham : Edward Elgar .
  • Mason , CM and Harrison , RT . 1994 . “ The informal venture capital market in the UK ” . In Financing small firms , Edited by: Hughes , A and Storey , DJ . 64 – 111 . London : Routledge .
  • Mason , CM and Harrison , RT . 1996 . Informal venture capital: A study of the investment process and post-investment experience . Entrepreneurship & Regional Development , 8 : 105 – 26 .
  • Mason , CM and Harrison , RT . 1997a . Business angels in the UK: A response to Stevenson and Coveney . International Small Business Journal , 15 ( 2 ) : 83 – 90 .
  • Mason , CM and Harrison. , RT . 1997b . Business angel networks and the development of the informal venture capital market in the UK: Is there still a role for the public sector? . Small Business Economics , 9 : 111 – 23 .
  • Mason , CM and Harrison , RT . 1998 . “ Stimulating investments by business angels in technology-based ventures: The potential of an independent technology appraisal service ” . In New technology based firms in the 1990s , Edited by: Oakey , R . Vol. 5 , 81 – 96 . London : Paul Chapman .
  • Mason , CM and Harrison , RT . 2000a . “ Informal venture capital and the financing of emergent growth businesses ” . In The Blackwell handbook of entrepreneurship , Edited by: Sexton , D and Landström , H . 221 – 39 . Oxford : Blackwell .
  • Mason , CM and Harrison , RT . 2000b . The size of the informal venture capital market in the UK . Small Business Economics , 15 : 137 – 48 .
  • Mason , CM and Harrison , RT . 2002 . The geography of venture capital investments in the UK . Transactions, Institute of British Geographers , 27 : 427 – 51 .
  • Mason , CM and Rogers , A . 1997 . “ The business angel's investment decision: An exploratory analysis ” . In Entrepreneurship in the 1990s , Edited by: Deakins , D , Jennings , P and Mason , C . 29 – 46 . London : Paul Chapman .
  • Mason , C and Stark , M . 2004 . What do investors look for in a business plan? A comparison of the investment criteria of bankers and venture capitalists . International Small Business Journal , 22 : 227 – 48 .
  • Mason , CM , Cooper , SY and Harrison , RT . 2002 . “ Venture capital in high technology clusters: The case of Ottawa ” . In New technology-based firms in the new millennium , Edited by: Oakley , R , During , W and Kauser , S . 261 – 78 . Oxford : Pergamon .
  • Parr , JB . 2002 . Agglomeration economies: Ambiguities and confusions . Environment and Planning A , 34 : 717 – 31 .
  • Paul , S , Whittam , G and Johnston , JB . 2003 . The operation of the informal venture capital market in Scotland . Venture Capital: An International Journal of Entrepreneurial Finance , 5 : 313 – 35 .
  • Politis , D . 2008 . Business angels and value-added: What do we know and where do we go? . Venture Capital: An International Journal of Entrepreneurial Finance , 10 : 127 – 47 .
  • Postma , PD and Sullivan , MK . 1990 . Informal risk capital in the Knoxville region , Knoxville, TN : University of Tennessee .
  • Powell , WW , Koput , KW , Bowie , JI and Smith-Doerr , L . 2002 . The spatial clustering of science and capital: Accounting for biotech firm-venture capital relationships . Regional Studies , 36 : 291 – 305 .
  • Reynolds , PD , Miller , B and Malin , WR . 1995 . Explaining regional variation in business births and deaths: US 1976–1988 . Small Business Economics , 7 : 387 – 407 .
  • Riding , A , Dal Cin , P , Duxbury , L , Haines , G and Safrata , R . 1993 . Informal investors in Canada: The identification of salient characteristics , Ottawa : Carleton University .
  • Sætre , AS . 2003 . Entrepreneurial perspectives on informal venture capital . Venture Capital: An International Journal of Entrepreneurial Finance , 5 : 71 – 94 .
  • Shane, S. 2005. Angel investing. A report for the Federal Reserve Banks of Atlanta, Cleveland, Philadelphia, Kansas City and Richmond. Weatherhead School of Management, Case Western Reserve University, Cleveland.
  • Short , DM and Riding , AL . 1989 . Informal investors in the Ottawa-Carleton region: Experiences and expectations . Entrepreneurship & Regional Development , 1 : 99 – 112 .
  • Sohl , JE . 1999 . The early stage equity market in the United States . Venture Capital: An International Journal of Entrepreneurial Finance , 1 : 101 – 20 .
  • Sorenson , O and Stuart , TE . 2001 . Syndication networks and the spatial distribution of venture capital investments . American Journal of Sociology , 106 : 1546 – 88 .
  • Sørheim , R . 2003 . The pre-investment behaviour of business angels: A social capital approach . Venture Capital: An International Journal of Entrepreneurial Finance , 5 : 337 – 64 .
  • Sørheim , R and Landström , H . 2001 . Informal investors – a categorization with policy implications . Entrepreneurship & Regional Development , 13 : 351 – 70 .
  • Spence , M . 1974 . Market signalling , Cambridge, MA : Harvard University Press .
  • Stevenson , H and Coveney , P . 1996 . “ A survey of business angels ” . In Small firms: Contributions to economic regeneration , Edited by: Blackburn , R and Jennings , P . 37 – 48 . London : Paul Chapman .
  • Storper , M . 1995 . Regional technology coalitions: An essential dimension of national technology policy . Research Policy , 24 : 895 – 911 .
  • Stouffer , SA . 1940 . Intervening opportunities: A theory relating mobility and distance . American Sociology Review , 5 : 845 – 67 .
  • Tymes , ER and Krasner , OJ . 1983 . “ Informal risk capital. California ” . In Frontiers of entrepreneurship research 1983 , Edited by: Hornaday , JA , Timmons , JA and Vesper , KH . 347 – 68 . Wellesley, MA : Babson College .
  • Uzzi , B . 1996 . The sources and consequences of embeddedness for the economic performance of organizations: The network effect . American Sociological Review , 61 : 674 – 98 .
  • Van Osnabrugge , M and Robinson , RJ . 2000 . Angel investing: Matching start-up funds with start-up companies , San Francisco, CA : Jossey Bass .
  • Wetzel Jr , WE . 1981 . “ Informal risk capital in New England ” . In Frontiers of entrepreneurship research 1981 , Edited by: Vesper , KH . 217 – 45 . Wellesley, MA : Babson College .
  • Wetzel Jr , WE . 1983 . Angels and informal risk capital . Sloan Management Review , 24 ( 4 ) : 23 – 34 .
  • Wetzel Jr , WE . 1994 . “ Venture capital ” . In The portable MBA in entrepreneurship , Edited by: Bygrave , WD . 172 – 94 . New York : Wiley .
  • Wiltbank , R . 2005 . Investment practices and outcomes of informal venture investors . Venture Capital: An International Journal of Entrepreneurial Finance , 7 : 343 – 57 .
  • Wong, A. 2002. Angel finance: The other venture capital. University of Chicago Graduate School of Business Working Paper. http://ssrn.com/abstract¼941228.
  • Zook , MA . 2002 . Grounded capital: Venture financing and the geography of the Internet industry, 1994–2000 . Journal of Economic Geography , 2 : 151 – 77 .

Reprints and Corporate Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

To request a reprint or corporate permissions for this article, please click on the relevant link below:

Academic Permissions

Please note: Selecting permissions does not provide access to the full text of the article, please see our help page How do I view content?

Obtain permissions instantly via Rightslink by clicking on the button below:

If you are unable to obtain permissions via Rightslink, please complete and submit this Permissions form. For more information, please visit our Permissions help page.