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Small Business Economics

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28.07.2021

Angel investors: the impact of regret from missed opportunities

verfasst von: Jeffrey Sohl

Erschienen in: Small Business Economics | Ausgabe 4/2022

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Abstract

As suppliers of critical risk capital, angels are routinely faced with a multitude of investment opportunities and typically invest in less than 20% of these prospects. Angels need to access these opportunities, decide which investments to pursue, and try to predict future winners and losers all within an environment typified by a high degree of information asymmetry. This research examines the real-time actions and decisions of angel investors and the effect of the investment regret or inaction on future investment decision-making. Angels who missed a past opportunity that subsequently realized a positive return are significantly less likely to invest in subsequent similar opportunities. Also, the dynamism of the market and the experience of the investor play important roles in influencing subsequent investment decisions once an investor has missed an opportunity. This research adds a level of granularity by identifying a new and potentially influential dimension—missed opportunities are an influential force in angel investment decision-making.

Vorheriger Artikel The effects of venture capital investments on industrial innovative opportunities and technological arbitrage opportunities

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Titel: Angel investors: the impact of regret from missed opportunities
verfasst von: Jeffrey Sohl
Publikationsdatum: 28.07.2021
Verlag: Springer US
Erschienen in: Small Business Economics / Ausgabe 4/2022
Print ISSN: 0921-898X
Elektronische ISSN: 1573-0913
DOI: https://doi.org/10.1007/s11187-021-00512-6

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