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Do Serial and Non-Serial Investors Behave Differently?: An Empirical and Theoretical Analysis

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  • Mark Van Osnabrugge

Abstract

This research investigates the differences between experienced private investors (‘serial angels’) in the UK, who have funded three or more unquoted ventures, and their less experienced counterparts (‘non-serial angels’). Using a theoretical base and data on 141 business angels, this study tentatively concludes that, relative to non-serial angels, serial angels may be less concerned with agency risks and more concerned with market risks. In particular, serial angels limit their investments more to (and conduct slightly more research on) industry sectors in which they have personal experience, prefer markets with less competition, choose to co-invest, are slightly less involved in their investments, and are less concerned with the location of the venture.

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  • Mark Van Osnabrugge, 1998. "Do Serial and Non-Serial Investors Behave Differently?: An Empirical and Theoretical Analysis," Entrepreneurship Theory and Practice, , vol. 22(4), pages 23-42, July.
    • Handle: RePEc:sae:entthe:v:22:y:1998:i:4:p:23-42
    DOI: 10.1177/104225879802200402
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    Cited by:

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    2. Politis, Diamanto & Gabrielsson, Jonas, 2006. "Informal investors and value added: The contribution of investors’ experientially acquired resources in the entrepreneurial process," Papers in Innovation Studies 2006/12, Lund University, CIRCLE - Centre for Innovation Research.
    3. Tom Vanacker & Veroniek Collewaert & Ine Paeleman, 2013. "The Relationship between Slack Resources and the Performance of Entrepreneurial Firms: The Role of Venture Capital and Angel Investors," Journal of Management Studies, Wiley Blackwell, vol. 50(6), pages 1070-1096, September.
    4. Wu Zhenyu & Yuan Wenlong & Wei Xueqi, 2012. "The Effects of New Ventures' Resource Strategies on Angels' Investing Outcomes: Big Gains and Big Losses in Angel Investments," Entrepreneurship Research Journal, De Gruyter, vol. 2(3), pages 1-27, July.
    5. Tiago Botelho & Richard Harrison & Colin Mason, 2021. "Business angel exits: a theory of planned behaviour perspective," Small Business Economics, Springer, vol. 57(1), pages 583-602, June.
    6. Block, Jörn H. & Fisch, Christian O. & Obschonka, Martin & Sandner, Philipp G., 2019. "A personality perspective on business angel syndication✰," Journal of Banking & Finance, Elsevier, vol. 100(C), pages 306-327.
    7. Joël Ludvigsen, 2009. "Decision time in Belgium: an experiment as to how business angels evaluate investment opportunities," Working Papers CEB 09-037.RS, ULB -- Universite Libre de Bruxelles.
    8. Melissa S. Cardon & Cheryl Mitteness & Richard Sudek, 2017. "Motivational Cues and Angel Investing: Interactions among Enthusiasm, Preparedness, and Commitment," Entrepreneurship Theory and Practice, , vol. 41(6), pages 1057-1085, November.
    9. Edelman, Linda F. & Manolova, Tatiana S. & Brush, Candida G., 2017. "Angel Investing: A Literature Review," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 13(4-5), pages 265-439, September.
    10. Johannes Wallmeroth & Peter Wirtz & Alexander Peter Groh, 2017. "Institutional Seed Financing, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review," Working Papers hal-01527999, HAL.
    11. Will Drover & Matthew S. Wood & Andrew Zacharakis, 2017. "Attributes of Angel and Crowdfunded Investments as Determinants of VC Screening Decisions," Entrepreneurship Theory and Practice, , vol. 41(3), pages 323-347, May.
    12. Veroniek Collewaert, 2012. "Angel Investors’ and Entrepreneurs’ Intentions to Exit Their Ventures: A Conflict Perspective," Entrepreneurship Theory and Practice, , vol. 36(4), pages 753-779, July.
    13. Lien, Wan-Chien & Chen, Jianhong & Sohl, Jeffrey, 2022. "Do I have a big ego? Angel investors' narcissism and investment behaviors," Journal of Business Venturing, Elsevier, vol. 37(5).
    14. Sergey Anokhin & Dietmar Grichnik & Robert D. Hisrich, 2008. "The Journey from Novice to Serial Entrepreneurship in China and Germany: Are the Drivers the Same?," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 6(2), pages 117-142.
    15. Sali Li & William Schulze & Zhineng Li, 2009. "Plunging into the sea, again? A study of serial entrepreneurship in China," Asia Pacific Journal of Management, Springer, vol. 26(4), pages 667-680, December.
    16. Dmitri Boreiko & Dimche Risteski, 2021. "Serial and large investors in initial coin offerings," Small Business Economics, Springer, vol. 57(2), pages 1053-1071, August.
    17. Appah Ebimobowei & Okoli Margaret Nnenna, 2013. "Angel Investments: A Financing Option for Economic Transformation in Nigeria," International Journal of Management Sciences, Research Academy of Social Sciences, vol. 1(9), pages 341-348.
    18. Dawn Gregg & Madhavan Parthasarathy, 2017. "Factors affecting the long-term survival of eBay ventures: a longitudinal study," Small Business Economics, Springer, vol. 49(2), pages 405-419, August.

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