Publication: Why Don’t You Like Me? Exploring the Social Venture Funding Gap in Angel Investing
Loading...
Date
2023-10-17
Authors
Antretter, Torben
Advisor
Court
Journal Title
Journal ISSN
Volume Title
Publisher
Elsevier
Defense Date
Metrics
Citation
Abstract
While many studies on the social venture funding gap have focused on venture-level factors to explain why social ventures receive less funding, the role of investors and their characteristics has received less attention. In this study, we propose that the reason for much of the funding gap is that many angel investors lack the analytical capabilities required to assess double bottom lines. Drawing on the literature on human capital in angel investing, we use data on 19,757 investment decisions by 1,428 angel investors from a large angel investment network to investigate the relationship between venture type, angel investor analytical capability, and investment likelihood. We find that the reluctance to invest into social ventures disappears for analytically capable angel investors (those who are relatively educated, experienced, and connected). These findings demonstrate the importance of investor human capital in social venture funding and closing the funding gap.
Unesco subjects
License
Attribution-NonCommercial-NoDerivatives 4.0 International
School
IE Business School
Center
Keywords
Citation
Wesemann, H., & Antretter, T. (2023). Why don’t you like me? Exploring the social venture funding gap in angel investing. Journal of Business Venturing Insights, 20, e00433.https://doi.org/10.1016/j.jbvi.2023.e00433.