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Do business angels alter the risk-return equation in early stage investments? Business angels as seen by venture capitalists in the German speaking countries

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Listed:
  • Heukamp, Franz

    (IESE Business School)

  • Liechtenstein, Heinrich

    (IESE Business School)

  • Wakeling, Nick

    (Citigroup Corporate and Investment Bank)

Abstract

Venture capitalists in German-speaking countries do not value the contribution of business angels in co-invested deals. Business angels do not reduce the risk perceived by venture capitalists in early-stage deals, even if the business angels have what venture capitalists regard as an ideal profile. Venture capitalists also refute that deals with business angels typically generate higher internal rates of return than deals without business angels.

Suggested Citation

  • Heukamp, Franz & Liechtenstein, Heinrich & Wakeling, Nick, 2006. "Do business angels alter the risk-return equation in early stage investments? Business angels as seen by venture capitalists in the German speaking countries," IESE Research Papers D/655, IESE Business School.
    • Handle: RePEc:ebg:iesewp:d-0655
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    References listed on IDEAS

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    Keywords

    Venture capital; Business Angels;

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