Angel Investors Research Articles

ПРОЕКТ USAID «ІНВЕСТИЦІЇ ДЛЯ СТІЙКОСТІ БІЗНЕСУ»: ГРАНТИ ДЛЯ СЕРЕДНЬОГО ТА ВЕЛИКОГО БІЗНЕСУ

The article examines the USAID Project “Investments for business sustainability”, in particular opportunities for large business companies. It was emphasized that in 2024, the IBR Project will implement its tasks through the provision of grants for joint investment and technical assistance to Ukrainian enterprises with an annual turnover of 8 million US dollars and more. “Co-investment” means that, in addition to grant funds, the potential grantee must contribute its own or other (non-grant) funds or resources that are clearly tied to the implementation and costs of the proposed concept. The study demonstrates the conditions for receiving grant assistance, and examines the eligibility criteria. And also, it is emphasized: in order to receive a grant of up to 2,000,000 US dollars, organizations must have a successful business model, take into account standards and trends, as well as demonstrate management skills to adapt new practices and capital investments. Emphasis is placed on the fact that the IBR Project determines that the minimum multiplier of sales volumes compared to the amount of the IBR Project grant must be at least five (for example, each USD 1 of the grant should lead to an increase in sales and exports of at least USD 5). Development finance institutions, institutional investors, direct investment funds, venture capital funds, angel investors, incubators/accelerators, business/professional associations, as well as other suppliers and consortia of investment services can also apply for a grant under the USAID Project “Investments for Business Sustainability “. It was concluded that the USAID Project “Investments for business sustainability” is an important initiative to support business sustainability in Ukraine, aimed at stimulating economic development, increasing sales and exports, as well as creating new jobs. Joint investments and technical assistance from grants can contribute to the effective financing and development of enterprises, contributing to their competitiveness and compliance with international standards.

O EFEITO DA INOVAÇÃO E DOS RECURSOS ESTRATÉGICOS NA ESTRUTURA DE CAPITAL

ABSTRACT Innovation is crucial for competitive companies. To effectively implement innovation, it is necessary to have substantial financial resources. Traditionally, financing sources such as venture capital and angel investors are considered more suitable. In contrast, debt is considered less suitable due to the risky nature of innovation, which creates a negative association between innovation and debt. At the same time, the resource-based view emphasizes the importance of resources for successfully executing strategies. Therefore, we aim to identify the effect of the interaction of innovation strategy and strategic resources on companies’ debt (capital structure). This finding is relevant since, despite the literature indicating that debt is inappropriate for innovation, it remains one of the most common sources of financing an innovative project. We show that a firm with an innovation strategy and strategic resources has greater financial leverage. The sample included American companies, covering 3,628 companies from 2008 to 2018.

The Role of Technological Innovation in Online Trading Platforms: A Case Study of ANGEL Broking's Sustainable Practices and Investor Satisfaction

As online trading continues to reshape the landscape of financial markets, the role of technological innovation becomes paramount in influencing investor satisfaction and fostering sustainability. This research presents a comprehensive case study that examines the intricate relationship between technological innovation, sustainable practices, and investor satisfaction within the context of AGEL Broking, a prominent player in the online brokerage industry. The study begins by reviewing the existing literature on the impact of technology on financial markets and investor behavior, emphasizing the growing importance of sustainable practices in contemporary financial services. It then transitions to a detailed analysis of AGEL Broking's technological innovations, exploring how the brokerage leverages cutting-edge technologies to enhance its online trading platform. Central to this investigation is the evaluation of AGEL Broking's commitment to sustainability, encompassing environmental, social, and governance (ESG) considerations. The case study scrutinizes the integration of sustainability principles into the technological infrastructure of the online trading platform and assesses how these practices resonate with investors seeking ethically aligned investment opportunities. To measure investor satisfaction, a combination of quantitative and qualitative methods is employed, including surveys, interviews, and analysis of trading data.

Thoughts and Evaluations on Tax Incentives Provided to Angel Investors

Dünyada ve Türkiye’de melek yatırımcılık her geçen yıl artan bir yatırım finansman modelidir. Melek yatırımcılar, başlangıç aşamasındaki yatırımlara finansal destek sağlamanın yanı sıra bu yatırımlara bilgi ve tecrübelerini aktarmak suretiyle yönlendirici destek de vermektedirler. Bu yönüyle melek yatırımcılık diğer finansman şekillerinden farklılaşmaktadır. Türkiye’de yasal düzenlemelerde “Bireysel Katılım Yatırımcısı” olarak nitelendirilen melek yatırımcılara sağlanan vergi teşvikleri Gelir Vergisi Kanunu’nun geçici 82. maddesinde düzenlenmiştir. Bu düzenleme ile melek yatırımcılara belirli koşullar altında vergi indirimi imkânı sağlanmıştır. Vergi indiriminden yararlanmak isteyen gerçek kişi yatırımcılar için vergi indirimi oranları %75 ve %100 olarak belirlenmiştir. Türkiye’de 2012 yılında yapılan kanuni düzenleme sonrasında 2013 yılında ilk yatırım yapılmıştır. Melek yatırımcılığın yıllar itibariyle gelişimini Finansal Piyasalar ve Kambiyo Genel Müdürlüğü tarafından hazırlanan Bireysel Katılım Sermayesi İlerleme Raporlarında görmek mümkündür. 2023 yılı ilk çeyrek raporunda açıklanan verilere göre, 2013 yılından bu yana 901 lisans verilmiştir. Bu çalışmada Türkiye’de “Bireysel Katılım Yatırımcısı” lisansı almış melek yatırımcılara sağlanan vergisel teşvikleri ile ilgili yasal düzenlemeler esas alınarak değerlendirmelerde bulunulmuştur.

21st Century Entrepreneurship Challenges and Opportunities

Today, India has become the fastest-growing marketing platform in the business market. In the 21st century, entrepreneurship has also undergone a thoughtful transformation and is characterized by different innovations, global visions along with social and environmental responsibility. Different technologies like AI, blockchain, biotech, and renewable energy, which are the central part of this period's entrepreneurial victory, challenge predictable business models. Globalization facilitates with international access, diverse talent, and collaboration, which are significant result to an entrepreneur. 21st-century business people prioritize their societal and environmental impact. Agility and rapid adaptation are crucial to meet evolving market demands. Access to capital remains a challenge, but crowdfunding, angel investors, venture capital, and blockchain-based fundraising expand opportunities. Regulatory environments adapt to the disruptive potential of modern entrepreneurship. Beyond business, 21st-century entrepreneurs shape job markets, redefine work, and encourage adaptability and entrepreneurial thinking.

Comparative investment decisions in emerging textile and FinTech industries in India using GARCH models with high-frequency data

The domestic textiles and apparel industry stood at $152 billion in 2021, growing at a CAGR of 12% to reach $225 billion by 2025. The textiles and apparel industry in India has strengths across the entire value chain from fibre, yarn, and fabric to apparel. On the other hand, many FinTech companies gained enough importance and attention during the Demonetization and COVID-19 pandemic situation where most people are dependent and prefer cashless payments and receipts over hard cash payments and receipts. Due to the growth of FinTech companies in India, consumer lending FinTech companies in India make up 17% of total FinTech enterprises. Many angel investors are coming forward to invest in such FinTech companies as this industry has much potential to grow in future. As there is enough scope for the expansion of FinTech companies in India, retail investors come forward to invest in the stocks of listed FinTech companies. As retail investors always look forward to returns either in the form of dividends or appreciation of stock prices, it is also necessary to analyse and model the stock price volatility of FinTech companies in India before investing. Hence, this research study is an attempt to use high-frequency data i.e. 1-minute closing prices, to formulate suitable GARCH (Generalised Autoregressive Conditional Heteroscedasticity) models for stock price volatility of listed textiles and FinTech companies that could also capture the asymmetric volatility if it exists due to third phase of COVID-19 pandemic and Russia-Ukraine war. The results concluded that there is a presence of positive shocks which might be due to the third wave of the COVID-19 pandemic that might have again shot the demand for financial products and services of these FinTech companies namely Paytm and PolicyBazaar and there is no negative shock of Russia-Ukraine war.

FINANCIAL LITERACY AND ENTREPRENEURSHIP-BUSINESS STARTUP FOR EFFECTIVE POST-RETIREMENT LIFE MANAGEMENT AMONG PRE-RETIREES IN UNIVERSITIES IN EDO STATE, NIGERIA

The role of entrepreneurship to prevent poverty and mitigate other post-retirement challenges has been acknowledged to be crucial for effective post-retirement life management but financial constraints could constitute bane to pre-retirees’ entrepreneurial intentions. Therefore, the study determined the financial knowledge that could spur their intentions and readiness for business start that could enable them surmount post-retirement life challenges. Two research questions guided the study. The descriptive survey research design was adopted and the population comprised all the pre-retirees in universities in Edo State. 250 respondents were randomly selected using the simple random sampling technique from three purposive selected universities. Primary data were gathered through the use of structured questionnaire which was validated and tested to have reliability coefficient value of 0.84. The descriptive statistics of mean and standard deviation were used to answer the research questions and test the respondents’ homogeneity. The findings revealed among others that the respondents perceived the benefits of entrepreneurship-business startup to ensure their effective post-retirement life management but intend to rely totally on their retirement savings benefits with the Contributory Pension Scheme (CPS) for business startup. Based on the findings it was recommended among others that pre-retirees should make contingency savings plan and that the employers and government should provide them financial education in order to acquaint them with relevant financial knowledge to access other forms of business financing such as loans, bank overdraft, angel investors, venture capital and government grants among others prior to final disengagement.

The Relationship Between Business Angels’ Psychological Attributes and Investments in Successful Portfolio Ventures: An Empirical Investigation Using Twitter Data

AbstractThe psychological attributes of business angels are an important but understudied determinant of business angels’ investment behaviour. We derive hypotheses on how psychological attributes (i.e. clout, risk‐taking, analytical thinking) affect business angels’ investments in successful portfolio ventures. Our theorized mechanisms draw on cognitive biases (i.e. overconfidence bias, loss‐aversion bias, confirmation bias) to explain how business angels’ psychological attributes could affect their selection of portfolio ventures. Empirically, we perform a language‐based text analysis using Twitter data to gain insights into the psychological attributes of 1511 US business angels who made 5209 investments. Our results show that the psychological attributes of clout, risk‐taking and analytical thinking can indeed affect business angels’ likelihood of investing in portfolio ventures that successfully acquire follow‐on funding, highlighting the importance of psychological attributes in business angel investments.

Signaling sustainability: Can it entice business angels' willingness to invest?

AbstractDespite increasing attention to sustainability as a source of new business opportunities, current research on new ventures has hardly considered this factor with respect to access to funding. This paper examines the role of new venture sustainability signals on business angels' willingness to invest. Specifically, it considers the effects of third‐party sustainability certification and the self‐proclaimed label of sustainable entrepreneurship as congruent reputational signals for inducing angel investors' willingness to invest. Three studies were conducted using a 2 × 2 between‐subject experimental design on certification and label conditions, respectively, in two samples from the Amazon MTurk crowdsourcing marketplace and one from business angels. Results show that early‐stage ventures would use such signals in their sustainability exemplification strategy to convey quality and prestige and eventually improve their chances of raising business angel funding. Implications for theory and practice are discussed.

Does religion matter to angels? Exploring the influence of religion in entrepreneurial investor decision-making

Despite the pervasive influence religion has on society, the role of religion in angel investor decision-making remains unknown. This study tests a model of how religion – both as a guiding institutional logic and a personal religious belief – influences angel investor evaluations. Drawing on the similarity attraction paradigm and expectancy violation theory, two scenario-based experiments find religion has a persistent but nuanced influence on investor evaluations. Generally, religious claims are a double-edged sword, either repelling or attracting angel investors. Specifically, faith-driven investors form positive evaluations of the venture but only when these evaluations are mediated by entrepreneur authenticity. By comparison, traditional angel investors form negative evaluations when religious claims are present, except for when angel investor religiosity is high. This suggests that faith-driven and traditional angel investors use different bases for evaluating entrepreneurs and ventures. Overall, our results have important implications for understanding the theological turn to entrepreneurship by finding religion as a double-edge sword, a multilevel influence, and a cognitive mechanism within investor decision-making.

Managing non-cooperative behaviors and ordinal consensus through a self-organized mechanism in multi-attribute group decision making

In consensus-based multi-attribute group decision making (MAGDM) problems, decision makers (DMs) may exhibit non-cooperative behaviors since they usually have different individual interests (sometimes conflicting) or limited knowledge, which strongly affects the efficiency of consensus and the quality of decision outcomes. Additionally, the existing MAGDM studies mainly focus on the cardinal consensus, and the ordinal consensus is ignored. Thus, this paper proposes a self-organized mechanism based framework to manage non-cooperative behaviors and ordinal consensus in MAGDM. First, a dual-membership function based on the basic idea of synergy theory is designed to detect non-cooperative behaviors at the element level of the multiple attribute evaluation matrix (MAEM), and then the weights of elements with non-cooperative behaviors are penalized automatically. In this way, the negative effects of non-cooperative behaviors can be eliminated. Next, a novel preference ranking-based ordinal consensus approach is proposed, which calculates an ordinal consensus based on the preference rankings of alternatives between individuals and the group. If the pre-defined consensus level is not reached, the feedback adjustment is used to help DMs modify their MAEMs to improve the consensus level; otherwise, the selection process is utilized to choose the optimal alternative(s). Finally, detailed simulation experiments and comparative analysis are designed to show the properties and effectiveness of the proposed framework, and an illustrative angel investment case is presented to demonstrate the calculation process and usability.

Why don’t you like me? Exploring the social venture funding gap in angel investing

While many studies on the social venture funding gap have focused on venture-level factors to explain why social ventures receive less funding, the role of investors and their characteristics has received less attention. In this study, we propose that the reason for much of the funding gap is that many angel investors lack the analytical capabilities required to assess double bottom lines. Drawing on the literature on human capital in angel investing, we use data on 19,757 investment decisions by 1,428 angel investors from a large angel investment network to investigate the relationship between venture type, angel investor analytical capability, and investment likelihood. We find that the reluctance to invest into social ventures disappears for analytically capable angel investors (those who are relatively educated, experienced, and connected). These findings demonstrate the importance of investor human capital in social venture funding and closing the funding gap.

Analysis of the capital structure of startups in light of the tradeoff and pecking Order theories

Purpose: Startups have significant differences compared to other companies. They have many intangible assets (e.g., team tenure and experience of founders), are risky, and tend not to generate profits in their initial years (Heirman & Clarysse, 2007; Weber & Zulehner, 2009). Does the startups’ financing choice also differ from that of traditional companies? We analyzed the capital structure of startups in their first years of life based on the classic tradeoff and pecking order theories. Methodology/approach: We collected data on 40 startups in the city of Ribeirão Preto, São Paulo, Brazil, through a questionnaire on the profiles of the founders, company characteristics, bottom-line performance and financing sources. The data collected covered the year of founding and the three subsequent years. Findings: The results indicated that these startups mainly financed themselves through the founders’ capital in all four years covered. Only in the third year did they start using resources generated internally, indicating pecking order adherence. However, the presence of angel investors and government subsidies contrasted with the absence of bank debt. In line with the tradeoff theory, bank debt was not a viable financing option in the early years of these firms since they had low profitability and high risk. Theoretical/methodological contributions: We offer a theoretical contribution by analyzing the adequacy of traditional financial theories in the specific context of startups. Originality: The finance literature about startups is scarce, and few studies have analyzed these companies from the capital structure theoretical perspective. Social contributions / for management: We provide a panorama of the financing of startups to support their financial planning regarding fundraising.

Role Of Institution In Field Of Entrepreneurial Development

Role Of Institution In The Field Of Entrepreneurial Development Abstract:- Institutions play a crucial role in the field of entrepreneurial development by providing a supportive ecosystem for entrepreneurs to thrive and succeed. This abstract will highlight the key roles institutions play in fostering entrepreneurship. Entrepreneurial development institutions, such as business incubators, accelerators, universities, government agencies, and non-profit organizations, act as catalysts in the entrepreneurial ecosystem. They provide various resources, guidance, and support to aspiring entrepreneurs, startup companies, and small businesses. Firstly, institutions offer education and training programs to enhance entrepreneurial skills and knowledge. They provide workshops, courses, and mentoring opportunities to equip individuals with the necessary business acumen, management techniques, and industry-specific expertise. These educational initiatives help entrepreneurs understand market dynamics, develop viable business models, and improve their chances of success. Secondly, institutions facilitate access to funding and financial resources. They connect entrepreneurs with potential investors, venture capitalists, and angel investors who are willing to provide capital to fuel business growth. Institutions may also offer grants, loans, or equity-based financing options to support entrepreneurs in their early stages when traditional funding may be challenging to obtain. By bridging the financial gap, institutions help entrepreneurs turn their innovative ideas into viable business ventures. Furthermore, institutions provide networking and collaboration opportunities. They organize networking events, conferences, and forums where entrepreneurs can connect with like-minded individuals, industry experts, and potential business partners. These platforms enable entrepreneurs to exchange ideas, share experiences, and forge valuable partnerships that can contribute to their business success. Institutions also play a crucial role in facilitating access to markets. They provide entrepreneurs with market intelligence, research, and guidance on market entry strategies. Additionally, they help entrepreneurs navigate regulatory frameworks, intellectual property rights, and other legal aspects, reducing barriers to market entry and facilitating business growth. Moreover, institutions foster a culture of innovation and risk-taking. They create an environment that encourages entrepreneurship, celebrates entrepreneurial success, and provides support during setbacks. Institutions promote an entrepreneurial mindset by organizing competitions, awards, and recognition programs that motivate individuals to pursue entrepreneurial opportunities. In summary, institutions in the field of entrepreneurial development play a multifaceted role in supporting and nurturing entrepreneurial ventures. They provide education, training, funding, networking, market access, and a conducive environment for entrepreneurs to thrive. By offering comprehensive support, institutions contribute to the growth of innovative startups, job creation, economic development, and societal progress.

How much conflict is too much? How frequent task conflict expressions affect angels’ reinvestment intention

PurposeThe aim of this study is to understand the levels (i.e. mild vs intense) of task conflict (TC) expressions between angel investors and entrepreneurs at the post-investment stage and how it affect angel investors’ follow-on investment intentions with the same entrepreneur.Design/methodology/approachSurvey data was gathered from 71 angel investors in China. Mplus was used to test the proposed research model.FindingsThis study found that angels perceive affective conflict (AC) when engaged in intense TC, unlike the case for mild TC expressions. Furthermore, the analysis shows that, unlike mild TC expressions, intense TC expressions impede angels’ reinvestment intentions when they perceive ACs. Other results indicate that when angels perceive that entrepreneurs are not open to coaching, the prominence of mild TC expression is sharply mitigated and becomes as detrimental as intense TC expressions.Research limitations/implicationsThis study only focused on one specific aspect of the angel–entrepreneur post-investment relationship: The effect of their TC expressions on angels’ reinvestment intentions. By no means do the authors imply that TC expression in the angel–entrepreneur post-investment relationship is the only factor that matters to angel investors in their follow-on investment intentions with the same entrepreneur.Practical implicationsThe findings suggest that entrepreneurs should pay careful attention to TC that may arise between them and their financiers. TCs are not entirely detrimental, but their negative effect might depend on how they are expressed. An appropriate level of TC may also improve enterprise performance and collaboration. Thus, angels and entrepreneurs should set clear goals and performance standards, where task interactions mainly focus on the goals and expected outcomes.Originality/valuePrior to this study, little was known about whether all TCs potentially lead to ACs. By distinguishing between levels (i.e. mild vs intense) of TC expressions between angels and entrepreneurs, this study adds a novel aspect to it by showing that TC, in and of itself, does not necessarily lead to AC but can lead to AC once its intensity grows.

Gender diversity effects on investment decisions: a study of Shark Tank

PurposeThis paper investigates gender disparity in investment decisions within the popular American TV show Shark Tank.Design/methodology/approachThe research uses a comprehensive dataset of 925 pitches from 14 seasons and 316 episodes, covering August 2009 to May 2023.FindingsContrary to previous studies, the findings indicate that female entrepreneurs do n'ot face discrimination in terms of their pitching success rates, regardless of their industry affiliation. However, the authors did observe that female entrepreneurs tend to receive lower valuations, both self-assessed and in final deals. This suggests a self-imposed gender gap in venture capital and angel investing, likely stemming from lower entrepreneurial aspirations among women.Originality/valueTo tackle this issue, the authors propose promoting female venture capital by increasing the representation of female entrepreneurs and business angels on Shark Tank. Such role models can inspire aspiring women in these fields. Additionally, the authors believe that mixed-gender founder teams, comprising both men and women, can play a significant role in developing promising startups with viable business models.

Financing of a New Venture- Current Scenario

Start-ups are young companies founded to develop a unique product or service, bring it to market and make it irresistible and irreplaceable for customers. The government provides funding and financial assistance to start-ups through various schemes and programs. This helps start-ups to get the necessary resources to start and grow their businesses. By availing these benefits, start-ups can have a significant advantage over their competitors.The new ventures have been provided financial supportalso by Venture Capital Funds, Private Equity investors, Angel Investors, High Net worth Individuals (HNIs), incubators, accelerators, seed funds and by the government. There have been examples of Governments supporting early stage funding. The present research paper aims to discuss various financing schemes recently started by the government. It also examines the financing options for a new venture.

지역 창업기업 투자 활성화를 위한 엔젤투자자 투자결정요인에 관한 연구

This study analyzed the investment decision factors of angel investors from the investor's perspective to promote investment in local startups using the AHP technique. To achieve the purpose of the study, a total of 110 respondents, including angel investors and those in charge of direct and related work related to investment such as venture capital and mother funds, were surveyed, and 47 of them were used for analysis. We differentiated from previous studies by setting the perspectives on investment decisions into resource-based perspective, industrial organization theory perspective, managerial characteristics perspective, business management function perspective, and other perspectives, and derived the factors that affect investment based on these perspectives through AHP analysis.
 The results of analyzing the relative importance of angel investors' investment decision factors for startups are as follows. From the managerial characteristics perspective, technical expertise, experience and performance in the area of managerial characteristics, marketing management function perspective, whether there is an independent distribution network and marketing organization, legal and other factors such as venture company certification, ISO certification, and the possibility of principal recovery, and resource-based perspective, differentiation in the area of products and services, original technology, and R&D capabilities in the area of technology were found to be the priorities of angel investors' investment decisions. As a result, it can be interpreted that a company's resources have a positive effect on its performance. It can be seen that angel investors put more emphasis on managerial characteristics when making investment decisions in startups, and on the contrary, they value the financial part of the company less. This may be due to the fact that start-ups are not able to secure a secure financial position unlike general companies.
 By identifying and analyzing the priorities of angel investors' investment decision factors across groups, this study provides practical implications for understanding investors and helping entrepreneurs to revalidate and strengthen their businesses from an investor's perspective.

Governance considerations and non-linear international scale-up behaviour among INVs

Underpinning this instrumental case study is an effectuation lens. It investigates how a firm’s governance affects decision-making within international new ventures (INVs), which rapidly withdrew from markets abroad, regarding their re-internationalisation activities. Interviews with founding owners, exhibiting growth-oriented objectives, provide unique insights regarding a combination of effectuation and causation-oriented decision-making. In comparison to earlier studies that focus on the role and mind-set of the founding management team, findings suggest stakeholders like angel investors may exhibit an influence on certain INVs’ internationalisation decisions. Some decision-makers view risks/rewards against objectives in subjective ways like ‘loss of credibility’ and the ‘fear of missing out,’ rather than simply economic terms like growth. New light is shed on the importance of decision-makers validating internationalised business models and exhibiting an ability to pivot product-market strategies. Non-linear international scale-up behaviour may include a temporary domestic market focus and potentially re-internationalising to different countries targeted prior to de-internationalisation.

(Invited) Is Commercialization of Intellectual Property in an Academic Environment Feasible?

A career in academics is in some ways at odds with commercialization. The priorities of an academic institution are publish or perish. Yet, the path to commercialization embeds either patents or trade secrets. Many in academics do not acknowledge patents as academic achievement. For a variety of reasons, university laboratories are not established to build the demonstrations needed to promote commercialization.Universities support patenting but are not equipped to facilitate commercialization of research, especially research based on sophisticated, fundamental ideas. Because of the constraints of the academic environment, ideas are driven to patents before devices are demonstrated. Yet the Bayh Dole Act provides that federally supported research be commercialized with any profits returned to the universities and inventors.These constraints create a barely navigable matrix for the academic inventor.When financial constraints reduce the University's support of patents, ownership is transferred to the inventor. This creates complexities in IP management with the University and increases cost to the inventor. However, it also creates opportunity.To commercialize the existing and evolving IP, a small business was formed with family. And now we maintain the patents, write grant applications restricted to the personally held IP, promote the IP, and try to bridge the chasm to commercialization.Startup success is elusive under the best conditions with experienced founders that understand both the technology and more importantly the business need. Founders typically have a working system and industry contacts before attempting to launch a new venture. Founders spend most of the time selling to investors and early prospects.New ventures started by academics have none of these advantages. They often have a great idea but no commercially viable prototype, no industry contacts and no connections to investors. They do not understand the amount of time spent on fundraising, and lack the skills and desire to raise funds. Commercialization of university research is more difficult than starting with nothing outside because university life is a full time job with many constraints. Investors are not interested in part-time CEOs. They want full time commitment and focused dedication. Investors are not interested in dealing with university administrations and procedures.Successful commercialization requires three roles: Business person that understands the market opportunitySubject matter expert that can defined a solution to the problemProduct manager that can translate between the other two and build a working system. A successful combination of these roles in coordination is required to build an investable business that can attract the capital required for commercialization.Academics can provide the subject matter expertise but engaging successful business people and product managers need to be found outside universities. Finding these connections is difficult but friends and family, industry organizations, and angel investment networks can provide some paths. University business schools and administrations should facilitate these connections with vetted business people.Universities should have an investment pitch competition put on by professors with patent portfolios each semester. Universities can invite investors to view the commercializable research that is being developed within the university. This is a non-trivial undertaking but can be done virtually to reach a wide range of investors across the country.Very few US universities have provided successful paths to commercialization. These most famous, well funded, private universities attract most of the investment interest. A few worked examples coming from other universities will encourage the appetite for future investment.