The Globalization of Angel Investments: Evidence across Countries

NBER Working Paper No. 21808

Issued in December 2015, Revised in March 2016

NBER Program(s):Corporate Finance, Productivity, Innovation, and Entrepreneurship



This paper examines investments made by 13 angel groups across 21 countries. We compare applicants just above and below the funding cutoff and find that these angel investors have a positive impact on the growth, performance, and survival of firms as well as their follow-on fundraising. The positive impact of angel financing is independent of the level of venture activity and entrepreneur-friendliness in the country. However, we find that the development stage and maturity of startups that apply for angel funding (and those that are ultimately funded) is inversely correlated with the entrepreneurship-friendliness of the country, which may reflect self-censoring by very early-stage firms that do not expect to receive funding in these environments.

A non-technical summary of this paper is available in the March 2016 NBER Digest. You can sign up to receive the NBER Digest by email.



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Document Object Identifier (DOI): 10.3386/w21808

Published: Josh Lerner & Antoinette Schoar & Stanislav Sokolinski & Karen Wilson, 2018. "The globalization of angel investments: Evidence across countries," Journal of Financial Economics, vol 127(1), pages 1-20.

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