University of Twente Student Theses
Preferences of Business Angel Investors with regards to the Assessment Criteria Size, Timing, Industry, and Geography: Evidence from the Netherlands
Dijk, M.N. (2021) Preferences of Business Angel Investors with regards to the Assessment Criteria Size, Timing, Industry, and Geography: Evidence from the Netherlands.
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| Abstract: | This study investigates the investment preferences of individual business angels in the Netherlands with regards to the assessment criteria size, timing, industry, and geography. Data is acquired from the financial platform Crunchbase and ten semi-structured interviews with business angels in the Netherlands. An explanatory mixed method research has been conducted to answer the six hypotheses that have been formed after a study of previous literature. The results show that business angels in the Netherlands prefer to invest in start-ups in the seed phase, in an industry where the business angel has experience, mostly geographically close, and with an average investment of 1.9 million Euros. In contrast to previous studies, this research did not find statistical evidence for the timing of the investment (with regards to the development phase) to have an influence on the size of the investment, except for some later-stage capital investments. The type of industry does not significantly influence the size of the investment made by business angels in the Netherlands, except for investment made in the Financial Technology industry. This research contributes to the scarce research of business angels’ preferences for investment criteria by adding findings of the business angel investment market in the Netherlands. Limitations of this research are the small sample size and the opaqueness of the business angel investment market. Future entrepreneurs and start-ups can reach out to business angels when only an idea exists, since most business angels in the Netherlands find this already eligible. Another practical recommendation from this study is that entrepreneurs and start-ups should reach out to the networks of business angels and focus on business angels that have experience in the industry of the start-up. Future research recommendations are to utilize multiple financial platforms, to reach out to business angel networks, and to conduct a survey amongst individual business angels in the Netherlands, in order to study other important investment criteria. |
| Item Type: | Essay (Master) |
| Faculty: | BMS: Behavioural, Management and Social Sciences |
| Subject: | 85 business administration, organizational science |
| Programme: | Business Administration MSc (60644) |
| Link to this item: | https://purl.utwente.nl/essays/89192 |
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