| Author: | Tsang, Ling Him Michael |
| Title: | Do super angel investors have the Midas Touch? Evidence from China |
| Advisors: | Lu, Haitian (AF) |
| Degree: | D.B.A. |
| Year: | 2020 |
| Subject: | New business enterprises -- Finance Venture capital Entrepreneurship Hong Kong Polytechnic University -- Dissertations |
| Department: | Faculty of Business |
| Pages: | ix, 95 pages |
| Language: | English |
| Abstract: | Prior research highlights the role of seed-funders such as Business Angels (BAs) in bringing start-ups to success but often neglects heterogeneous attributes within the Angel Investors. This article asks whether the SAIs (SAIs), who are serial investors with past entrepreneurship experience, add more value to their investees than normal Angel Investors (AIs). Data from 1) Field Research from 2018-2019 with nine Business Angel Investors and eight start-up founders found that SAIs provide materially more value and benefits than AIs in all four areas of our framework, specifically SAIs help overcome funding gaps, fill knowledge/experience gaps through providing own human, social and organizational capital during post-investment involvement and provide more resources to gather further funding and 2) Empirical evidencefrom the largest databaseon all angel and VC investments in China from 1995 to 2016 shows that start-up ventures invested by SAIs have 50%-to-100% higher probability of receiving subsequent VC financing than those invested by AIs, the effects are stronger when SAI had capital market (IPO and M&A) experience in their own entrepreneurial firms. Conditional on receiving VC financing, I show that ventures backed by SAI with capital market experience are particularly popular among VC that lack successful exit experience. Taken together, my evidence is consistent with the certifying role of SAI in an emerging economy and supports that SAIs do have the Midas touch by bringing more value/benefits to their investee companies and help them to achieve more success compared to AIs. These findings support the need to professionalize the Business Angels market which has policy implications. |
| Rights: | All rights reserved |
| Access: | restricted access |
Files in This Item:
| File | Description | Size | Format | |
|---|---|---|---|---|
| 5016.pdf | For All Users (off-campus access for PolyU Staff & Students only) | 772.3 kB | Adobe PDF | View/Open |
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