부산대학교 도서관

Abstract In this paper, we shed light on interactions among the various investors operating within the entrepreneurial finance ecosystem. Specifically, we aim to investigate what business angel (BA) investment practices are correlated with follow-on venture capital (VC) financing, and uncover the strategies that determine a complementary-based or a substitution-based relationship with VCs. We analysed a sample of 176 companies that received a BA investment during 2008-2016 and collected financial data over a 10-year period after the BA investment. The data examined indicate that BAs' selectivity, as measured by their rejection rate, and BAs' affiliation to an angel network, are positively related with the probability of raising follow-on VC financing. However, a high level of BAs' monitoring activity negatively influences the probability of obtaining VC funding. Interestingly, BA networks do affect this relationship. The positive impact of BAs' rejection rate is informative for VC decisions if the BA does not invest through a network. Conversely, a high level of monitoring may convey a negative signal for VC, particularly if the BA is affiliated to a network. These results extend our knowledge of the investment practices of BAs and their role in allowing angel-backed companies to raise follow-on VC financing. Biographical information: Vincenzo Capizzi is Full Professor of Banking & Finance at Università del Piemonte Orientale, where he serves as Vice Rector for University Quality Assurance. He is Affiliate Professor at SDA Bocconi School of Management. He has published articles dealing with start-up financing, venture capital and investment banking in international scientific journals, including the Journal of Corporate Finance, Journal of Banking and Finance and Journal of Small Business Management. He is Editor-in-Chief of Venture Capital: An International Journal of Entrepreneurial Finance. Annalisa Croce is an Associate Professor at Politecnico di Milano. She is the author of more than 30 publications in international scientific journals, including the Journal of Business Venturing, Research Policy, Entrepreneurship Theory and Practice, Journal of Corporate Finance, Small Business Economics and Journal of Product Innovation Management, among others. Francesca Tenca holds a Post-Doc position at Politecnico di Milano, Italy. She specializes in seed and informal financing and has research and teaching experience in entrepreneurial finance and start-ups creation and scaling up. She has authored publications in international scientific journals, including the Journal of Corporate Finance, Small Business International Journal and Journal of Economic Surveys. Byline: Vincenzo Capizzi, Annalisa Croce, Francesca Tenca