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The informal venture capital market in Norway ? investor characteristics, behaviour and investment preferences

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  • Bjornar Reitan
  • Roger Sorheim

Abstract

There is widespread recognition in Norway that the reliance of SMEs on debt financing must be reduced while equity finance sources need to be increased. One of the main sources of equity capital is the informal venture capital market. This paper is a response to the lack of knowledge of the informal venture capital market in Norway. The findings reported in this paper are based on a large survey comprising 6618 persons. Out of all the respondents, 425 are classified as informal investors and comprise the data material that this paper is based upon. This paper describes the Norwegian informal investors in terms of their demographics, investment activity, behaviour and investment preferences. A comparison is made between the results from the Norwegian survey and findings from the UK and Sweden.

Suggested Citation

  • Bjornar Reitan & Roger Sorheim, 2000. "The informal venture capital market in Norway ? investor characteristics, behaviour and investment preferences," Venture Capital, Taylor & Francis Journals, vol. 2(2), pages 129-141, April.
  • Handle: RePEc:taf:veecee:v:2:y:2000:i:2:p:129-141
    DOI: 10.1080/136910600295747
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    Cited by:

    1. Yaokuang Li & Shuoyuan Jiang & Dan Long & Huidao Tang & Juan Wu, 2014. "An exploratory study of business angels in China: a research note," Venture Capital, Taylor & Francis Journals, vol. 16(1), pages 69-83, January.
    2. Hariem Abdullah & Turgut Tursoy, 2021. "Capital structure and firm performance: evidence of Germany under IFRS adoption," Review of Managerial Science, Springer, vol. 15(2), pages 379-398, February.
    3. Jeffrey E. Sohl, 2006. "Angel Investing: Changing Strategies During Volatile Times," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 11(2), pages 27-48, Summer.
    4. Györfy Lehel & Madaras Szilárd, 2020. "Influencing Factors of the Informal Investment in Central Europe," Economics and Business, Sciendo, vol. 34(1), pages 78-91, February.
    5. 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.
    6. Kosztopulosz, Andreász & Makra, Zsolt, 2004. "Az üzleti angyalok szerepe a növekedni képes kisvállalkozások fejlesztésében Magyarországon [The role of business angels in developing small firms in Hungary with growth potential]," Közgazdasági Szemle (Economic Review - monthly of the Hungarian Academy of Sciences), Közgazdasági Szemle Alapítvány (Economic Review Foundation), vol. 0(7), pages 717-739.
    7. 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.
    8. Richard T. Harrison & Colin M. Mason, 2007. "Does Gender Matter? Women Business Angels and the Supply of Entrepreneurial Finance," Entrepreneurship Theory and Practice, , vol. 31(3), pages 445-472, May.
    9. Nirmalkumar Singh Moirangthem & Barnali Nag, 2024. "Value-added Activities of Venture Capitals in Entrepreneurial Finance: Evidence from the Growth of Flipkart," Asian Journal of Management Cases, , vol. 21(1), pages 57-68, March.
    10. Gilles Certhoux & Alexandre Perrin, 2013. "Business Angels' practices in the screening stage: A study of knowledge transfer to the entrepreneur," Post-Print hal-00853184, HAL.

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