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Conflict between business angels and venture capitalists, An exploratory study on the relationship between business angels and venture capitalists

Disselhorst, W.M (2021) Conflict between business angels and venture capitalists, An exploratory study on the relationship between business angels and venture capitalists.

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Abstract:This research is an exploratory one into conflicts experienced by business angels and venture capitalists, between business angels and venture capitalists in early-stage start-ups in the Netherlands. It aims to expand upon recent research regarding the relationship between business angels and venture capitalists through building the framework upon existing academic research regarding the differences between the two investor types. Through the use of semi-structured interviews with business angels, venture capitalists and experts, the following research question is answered in this paper: “What drives conflicts experienced between business angels and venture capitalists, that negatively impact their relationship/investments when investing in early-stage start-ups? (taking the Netherlands as an example)” By doing so, this thesis both confirms and expands upon existing literature regarding differences between investors which can lead to conflict situations. Divided into pre-investment of a VC and post-investment, it shows that 5 conflict themes are experienced by business angels and VCs. Almost all of these conflicts seem to be partially influenced by a lack of knowledge, stemming from both business angels and VCs. The lack of knowledge seems to be the most significant conflict theme for VCs and experts towards business angels, while business angels seem to experience the most conflicts regarding contracts with VCs. This research goes on to explain why this seems to be the case. Furthermore, it offers preliminary steps into possible solutions to decrease the creation of these conflicts based on what participants think is desirable. Afterwards, this research offers some interesting theoretical contributions regarding the relationship between both investors and what leads to conflict, while also offering some practical implications into what can be taken from this study to help business angels, VCs and other parties to be more knowledgeable and in turn reduce conflicts. Lastly, this study offers up some avenues for future research to strengthen the reliability of these exploratory results, and also expand upon the interesting findings mentioned in this research paper.
Item Type:Essay (Master)
Clients:
Oost NL, Apeldoorn, Netherlands
Faculty:BMS: Behavioural, Management and Social Sciences
Subject:85 business administration, organizational science
Programme:Business Administration MSc (60644)
Link to this item:http://purl.utwente.nl/essays/87814
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