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Assessment of Government Funding of Business Angel Networks in Flanders

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  • Veroniek Collewaert
  • Sophie Manigart
  • Rudy Aernoudt

Abstract

Collewaert V., Manigart S. and Aernoudt R. Assessment of government funding of business angel networks in Flanders, Regional Studies. The paper evaluates whether government intervention through the subsidization of business angel networks (BANs) enhances regional economic growth in Flanders, Belgium. It shows that, firstly, BANs reduce the information and financing problems entrepreneurial companies face. Secondly, that these companies contribute to economic development and growth. Thirdly, that there are positive indicators of future potential, such as an upward evolution in value creation and the ability to raise follow-on financing. Finally, the programme has many positive indirect effects. This leads to a tentative conclusion that public BAN support is warranted. However, to make this conclusion more robust requires a longer-term evaluation. [image omitted] Collewaert V., Manigart S. et Aernoudt R. Une evaluation des finances publiques en faveur des reseaux de bailleurs de fonds en Flandres, Regional Studies. On cherche a evaluer si, oui ou non, l'intervention du gouvernement par moyen des subventions en faveur des reseaux de bailleurs de fonds augmente la croissance economique regionale. On montre que, primo, les reseaux de bailleurs de fonds (BANs; Business Angel Networks) attenuent les problemes que doivent affronter les entreprises entrepreneuriales dans les domaines de l'information et des finances. Secundo, ces entreprises contribuent au developpement et a la croisssance economiques. Tertio, il y a des clignotants positifs quant au potentiel futur, tels un mouvement vers le haut de la creation de valeur et la capacite a trouver des finances complementaires. Pour finir, le programme a beaucoup d'effets indirects positifs. Cela amene a conclure provisoirement que les finances publiques en faveur des BANs sont justifiees. Cependant, il faut une evaluation a plus long terme pour affirmer cette conclusion. Capital-risque Bailleurs de fonds Politique Developpement economique Distorsion du marche Collewaert V., Manigart S. und Aernoudt R. Eine Bewertung der staatlichen Finanzierung von Business-Angel-Netzwerken in Flandern, Regional Studies. Wir untersuchen, ob sich durch eine staatliche Intervention in Form einer Subventionierung von Business-Angel-Netzwerken das regionale Wirtschaftswachstum verbessert. Gezeigt wird erstens, dass Business-Angel-Netzwerke die Informations- und Finanzierungsprobleme junger Firmen reduzieren. Zweitens tragen diese Firmen zur Wirtschaftsentwicklung und zum Wirtschaftswachstum bei. Drittens liegen positive Indikatoren fur das Zukunftspotenzial vor, wie z. B. hinsichtlich einer Aufwartsevolution bei der Wertschaffung und der Fahigkeit zur Sicherung von Nachfolgefinanzierung. Schliesslich hat das Programm zahlreiche positive indirekte Auswirkungen. Diese Ergebnisse veranlassen uns zur vorsichtigen Schlussfolgerung, dass eine offentliche Unterstutzung von Business-Angel-Netzwerken empfehlenswert ist. Allerdings ist eine langerfristige Bewertung erforderlich, um dieses Fazit robuster zu gestalten. Risikokapital Business angels Politik Wirtschaftsentwicklung Scheitern auf dem Markt Collewaert V., Manigart S. y Aernoudt R. Valoracion de la financiacion estatal de las redes de inversion privada en Flandes, Regional Studies. Aqui evaluamos si mediante una intervencion estatal en forma de subsidio de las business angel networks (BAN) o redes de inversion privada es posible aumentar el crecimiento economico regional. En primer lugar, mostramos que las BAN reducen los problemas de informacion y financiamiento de las sociedades empresariales. En segundo lugar, estas sociedades contribuyen al desarrollo y crecimiento economicos. En tercer lugar, existen indicadores positivos del potencial futuro, por ejemplo una evolucion ascendente en la creacion de valores y la habilidad para procurar una financiacion de seguimiento. Por ultimo, el programa tiene muchos efectos positivos indirectos. Esto nos lleva a concluir provisionalmente que es recomendable un apoyo publico de las BAN. Sin embargo, para que esta conclusion sea mas solida es necesaria una evaluacion a largo plazo. Capital de riesgo Angeles Inversores Politica Desarrollo economico Fallo mercantil

Suggested Citation

  • Veroniek Collewaert & Sophie Manigart & Rudy Aernoudt, 2010. "Assessment of Government Funding of Business Angel Networks in Flanders," Regional Studies, Taylor & Francis Journals, vol. 44(1), pages 119-130.
    • Handle: RePEc:taf:regstd:v:44:y:2010:i:1:p:119-130
    DOI: 10.1080/00343400802070860
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    1. Hoyos Iruarrizaga, Jon & Saiz Santos, María, 2013. "The informal investment context: specific issues concerned with business angels," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 26, pages 179-198.
    2. Marek Zinecker & Martina Skalicka & Adam P. Balcerzak & Michał Bernard Pietrzak, 2022. "Identifying the impact of external environment on business angel activity," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 35(1), pages 83-105, December.
    3. Bonini, Stefano & Capizzi, Vincenzo & Zocchi, Paola, 2019. "The performance of angel-backed companies," Journal of Banking & Finance, Elsevier, vol. 100(C), pages 328-345.
    4. Julien Salin & Nadine Levratto, 2020. "Are business angel-backed companies truly different? a comparative analysis of the financial structure," EconomiX Working Papers 2020-5, University of Paris Nanterre, EconomiX.
    5. Katarzyna Szkuta & Blagoy Stamenov & Anna Ianshyna, 2017. "Improving access to finance for young innovative enterprises with growth potential: evidence of impact on firms' outputs: Part 1. Equity instruments: lessons learned from policy evaluations," JRC Research Reports JRC109163, Joint Research Centre.
    6. Bonnet, Christophe & Capizzi, Vincenzo & Cohen, Laurence & Petit, Aurelien & Wirtz, Peter, 2022. "What drives the active involvement in business angel groups? The role of angels' decision-making style, investment-specific human capital and motivations," Journal of Corporate Finance, Elsevier, vol. 77(C).
    7. Edward Kasabov, 2015. "Start–Up Difficulties in Early–Stage Peripheral Clusters: The Case of IT in an Emerging Economy," Entrepreneurship Theory and Practice, , vol. 39(4), pages 727-761, July.
    8. Cipollone, Angela & Giordani, Paolo E., 2019. "Entrepreneurs meet financiers: Evidence from the business angel market," Journal of Business Venturing, Elsevier, vol. 34(5), pages 1-1.
    9. Harrison, Richard T. & Bock, Adam J. & Gregson, Geoff, 2020. "Stairway to heaven? rethinking angel investment policy and practice," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    10. José Bilau & Soumodip Sarkar, 2016. "Financing innovative start-ups in Portuguese context: what is the role of business angels networks?," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 7(4), pages 920-934, December.
    11. Gvetadze, Salome & Pal, Kristian & Torfs, Wouter, 2020. "The business angel portfolio under the European Angels Fund: An empirical analysis," EIF Working Paper Series 2020/62, European Investment Fund (EIF).
    12. 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.
    13. Brett Anthony White & John Dumay, 2020. "The angel investment decision: insights from Australian business angels," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 60(3), pages 3133-3162, September.
    14. Munari, Federico & Toschi, Laura, 2015. "Assessing the impact of public venture capital programmes in the United Kingdom: Do regional characteristics matter?," Journal of Business Venturing, Elsevier, vol. 30(2), pages 205-226.
    15. Gurău, Călin & Dana, Leo-Paul, 2020. "Financing paths, firms’ governance and corporate entrepreneurship: Accessing and applying operant and operand resources in biotechnology firms," Technological Forecasting and Social Change, Elsevier, vol. 153(C).

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