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William R. Kerr, Josh Lerner, Antoinette Schoar, The Consequences of Entrepreneurial Finance: Evidence from Angel Financings, The Review of Financial Studies, Volume 27, Issue 1, January 2014, Pages 20–55, https://doi.org/10.1093/rfs/hhr098
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Abstract
This article documents the fact that ventures funded by two successful angel groups experience superior outcomes to rejected ventures: They have improved survival, exits, employment, patenting, Web traffic, and financing. We use strong discontinuities in angel- funding behavior over small changes in their collective interest levels to implement a regression discontinuity approach. We confirm the positive effects for venture operations, with qualitative support for a higher likelihood of successful exits. On the other hand, there is no difference in access to additional financing around the discontinuity. This might suggest that financing is not a central input of angel groups.