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Angel Investor-Entrepreneur Fit: The Nexus of Angel Motivation and Entrepreneur Personality and Passion

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The Anatomy of Entrepreneurial Decisions

Part of the book series: Contributions to Management Science ((MANAGEMENT SC.))

Abstract

Angel investor decision-making is different from that of venture capitalists. Though both groups invest in new ventures, angel investors are more concerned with agency risk, whereas venture capitalists are more concerned with market risk. More so than venture capitalists, angel investors largely succeed or fail based on their ability to make accurate judgments about the entrepreneurs they back—and decide not to back. Importantly, some angel investors appear to have noneconomic motivations to invest in risky startups. This chapter reviews the extant literature on angel investor motivations and decision-making and entrepreneur personality and passion so as to orient researchers on how these research streams may coalesce. The chapter ends with a discussion of both interesting research ideas and practical implications for angel investors and entrepreneurs.

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Acknowledgments

The author would like to thank Drs. Charles Naquin and Erich Dierdorff of DePaul University for their gracious advice and input as he developed the material for this chapter in its various formats. He would also like to thank the anonymous reviewer who offered insightful suggestions that improved the end result.

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Authors and Affiliations

  1. DePaul University, Chicago, IL, USA

    Kevin P. Taylor

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  1. Kevin P. Taylor
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Correspondence to Kevin P. Taylor .

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Editors and Affiliations

  1. International Business School, University of Lincoln, Lincoln, UK

    Andrea Caputo

  2. Management and Law Department, University of Rome “Tor Vergata”, Rome, Italy

    Massimiliano M. Pellegrini

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Taylor, K.P. (2019). Angel Investor-Entrepreneur Fit: The Nexus of Angel Motivation and Entrepreneur Personality and Passion. In: Caputo, A., Pellegrini, M.M. (eds) The Anatomy of Entrepreneurial Decisions. Contributions to Management Science. Springer, Cham. https://doi.org/10.1007/978-3-030-19685-1_9

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