Financing is – sometimes more or less – a key element for founders to establish their own startup, develop the product, and grow the company via the associated business model. However, not every founder needs or wants to finance their company via an external investor. Also, not every founder has the goal of developing their startup into rapid growth with as many employees as possible and maximum turnover/profits, leading to an IPO as an exit – not for themselves or external investors. Quite a few founders pursue long-term linear growth and see financing as a means to an end rather than being driven by investors’ expectations. All these circumstances are reflected in the founders' different ambitions for their startups and in the impact, this has on investors' expectations. Based on entrepreneurial ambitions, we investigate the effect of the associated different startup types on (1) the goal of sales and profit generation/maximization, (2) capital requirements, (3) business angel, and (4) venture capital financing among a study with 553 startups from Germany.

ABSTRACT Based on a conceptualisation of the entrepreneurial process, we take a thought examination approach to examine current changes in the role and functioning of the entrepreneurial risk capital market, which we understand in the broad sense of all agents (including business angels, equity crowdfunding investors, accelerators, corporate venture capital, government (public sector) venture capital and institutional venture capital) involved in the provision of risk capital to entrepreneurial ventures. Specifically, we address the following question: What are the implications of the pattern of evolution of the entrepreneurial risk capital market for the development and cultural, social and economic impact of the entrepreneurial process? Based on an analysis of current trends in the market, the spatialities and temporalities of which are being transformed as new investors enter the market, new (digital) technologies are introduced and it becomes increasingly internationalised, we identify five issues shaping the development of the risk capital market – democratisation, compartmentalisation, internationalisation, financialization and mythification. We conclude that “entrepreneurial risk capital” may be more a constraint on rather than an enabler of the entrepreneurship process.

ABSTRACT Professional esports teams increasingly rely on venture capital (VC) to fund their growth. However, the structural dynamics of this financing model and its financial viability remain underexplored. Anchored in signaling theory, this qualitative study based on seven interviews with esports team representatives and esports investors investigates the structuration of fundraising deals within professional esports teams, analyzing its stages and allocation of funds. It highlights that VC funding is often preceded by early-stage financing, such as business angels and Series A or B rounds, serving as legitimacy signals and used as a cyclical resource for specific projects like international expansion or player acquisitions. Interviews with team executives indicate that fundraising is critical for survival and project acceleration but does not lead to a viable income stream. Challenges include esports’ fluctuating market appeal, limited investor understanding of the industry, and difficulties in monetization. However, emerging opportunities lie in leveraging fan communities, exploring cryptocurrency integration, and artificial intelligence applications. The findings deepen the understanding of VC structuration in esports, identifying adaptability and balancing current growth with financial viability as key success factors. Offering practical insights, this study underscores the need for innovative, viable business models to navigate the complexities of the esports ecosystem.

Abstract We surveyed 60 German investors—including business angels and investors from venture capital, private equity, and corporate venture capital—to understand how they make investment decisions and interact with their portfolio companies. The extant literature explains the investment process of venture capital firms in a variety of countries—most notably the USA—but to date, no study has specifically examined different types of German investors and their decision-making heuristics. This paper is original in its focus on Germany and its emphasis on investors’ personality characteristics. This study extends existing research by adding questions on investors’ personality traits, cognitive styles, and social perception, and allows a descriptive and comparative overview of investors’ (i) pre-investment activities, (ii) investment decision-making processes, and (iii) post-investment interactions. The study’s empirical findings suggest that investors’ cognitive styles have a strong impact on their overall evaluation of investment opportunities as well as on their offered valuations, with analytically oriented investors placing greater importance on business models and valuations. However, and contrary to expectations, personality traits measured with a modified version of the Big Five personality scale do not explain variance in investment behavior. This research highlights distinct cognitive patterns among investor types, particularly emphasizing business angels’ reliance on intuition, thus offering practical insights for entrepreneurs seeking tailored engagement strategies with different investor profiles.

ABSTRACT This study discusses angel investors’ investing choices and suggests further research. Using bibliometric analysis of 581 Scopus articles from 2001 to 2024, we identified the most significant authors, organizations, journals, and countries by total publications and citations, demonstrating their importance within the framework. R-Biblioshiny and VOSviewer generated the bibliometric findings. The top contributors are identified by the results: India (country); BRNO University of Technology, Czech Republic; Amity University, India (affiliations); Venture Capital (journal); and Maqsood Ahmad. Individual investors, business angels, and investment decisions were distinctive and understudied in business angel investing patterns. Maxwell, Jeffrey, Levesques’s “Business Angel Early-Stage Decision Making,” is most cited. The study’s results follow Bradford’s Law but not Lotka’s Law, indicating that few writers are contributing to the area. Professionals and scholars may learn about investing trends and topics from the outcomes. The study identified research needs for further investigation. This study analyzed 24 years of research publications on this topic. The authors believe this is the only thorough and systematic synthesis of the subject’s literature.

ABSTRACT This study assesses business angels’ approaches to sustainability impact assessments through a principal–agent lens. Interviews with 20 angels shed light on different frameworks and tools, as well as the drivers, challenges, and temporal aspects underlying angels’ integration of sustainability impact assessments. While some angels implement systematic sustainability impact assessments throughout the entire investment process, others consciously decide against adopting such approaches and rely on their gut feeling. A third group acknowledges the need for more applicable tools but is hindered by data and resource limitations, as well as a lack of suitable methodologies. Based on extant literature and the empirical findings, a framework for angel sustainability impact assessment is presented. These findings further support the importance of sustainability knowledge for investors. Principal–agent theory is modified to account for context- and time-specificities. Recommendations for future research and practice are made as well as contributions to the green entrepreneurial finance literature.

Introduction. Innovative entrepreneurship and venture capital activities have undergone significant transformations related to the COVID-19 pandemic, full-scale aggression by the Russian Federation against Ukraine, energy crises, and the intensification of trends toward digitalization and sustainable development. Uncertainty is growing and risks that are innovative in nature are emerging. Accordingly, the decision-making process for venture investors is becoming more complicated. It is important to apply a risk-oriented approach to investment decisions, which involves not only assessing the growth potential of startups, but also their financial stability, adaptability, compliance with the principles of sustainable development, and ability to manage risks in the context of digitalization. In particular, this aspect is especially relevant in Ukraine, due to the growing role of venture investments in financing innovation in the process of post-war recovery and European integration. Problem Statement. The problem contains need to develop risk-oriented monitoring and management tools for use in the process of venture financing of innovative enterprises in Ukraine, taking into account modern approaches. The purpose is to develop a set of innovative measures to increase the effectiveness of venture investor risk monitoring in the process of financing innovative entrepreneurship based on a preliminary review of the activities of venture investors and their role in the development of innovative entrepreneurship in Ukraine. Methods. The methods of content analysis, comparative analysis, system and structural-functional analysis, PEST analysis were used. Elements of expert evaluation and graph-analytical method were applied. Results. The article analyzes selected indicators of the activities of venture investors who are of Ukrainian origin or operate in Ukraine. The initial database contains 407 investors, including venture funds, business angels, banking institutions, and business incubators. For direct analysis, 245 complete profiles of venture investors on the Dealroom Ukraine platform were selected. The analysis was performed using Jamovi software. A set of measures to improve the effectiveness of venture investor risk monitoring was proposed and their SNW analysis was performed. The set of innovative measures forms a multidimensional risk management system. This allows for the timely identification and implementation of measures to reduce financial and operational threats and minimize legal and reputational risks. This creates a favorable environment for innovation. Conclusions. A system of measures to improve the effectiveness of venture investor risk monitoring in the process of financing innovative entrepreneurship has been developed, which consists of a combination of the following groups of measures: analytical and digital (combining Big Data and artificial intelligence with automated financial monitoring); measures using blockchain technologies, which consists of the implementation of blockchain technologies and smart contracts; control of intellectual property rights (IP due diligence measures, conclusion of license agreements/joint ownership of IP); ESG risk management, including green risks (includes analysis of innovators according to ESG criteria and evaluation of GreenTech startups); networking measures (participation in investor syndicates, dispute resolution based on mediation and arbitration) and evaluation of preliminary data based on Dealroom, Crunchbase, and other platforms. The combination of various types of measures will ensure the stability and effectiveness of investment processes in conditions of growing economic and social uncertainty.

Abstract The rise of Decentralized Finance (DeFi) has introduced new fundraising mechanisms for startups. This study examines the interplay between Initial Coin Offerings (ICOs) and traditional entrepreneurial finance investors. Our findings document that while ICO funding amounts do not predict future funding success, prior business angel investment significantly increases the likelihood of securing follow-on funding. Co-investment by crypto funds during the ICO enhances follow-on funding opportunities, particularly for firms backed by hedge-style crypto investors. This research contributes to the entrepreneurial finance literature by examining how blockchain-based financing mechanisms integrate into the broader venture funding ecosystem.

ABSTRACT This study, using an innovative longitudinal quantitative methodology, investigated the equity funding gap for start-up and scale-up stage green technology (“Greentech”) companies. It reports the role innovation and technology plays to address environmental challenges. Evaluation of the last decades’ equity funding environment using Beauhurst data for UK Greentech companies suggests that funding in relative and total terms has increased. The findings suggest there is an increased pipeline of viable Greentech companies and that their financial access has broadened with the enhanced funding from venture capital, business angel and crowdfunding investors. However, despite improvements in the supply side, challenges remain for hardware-based Greentech companies to access larger scale funding, especially at the scaling-up stage and across all funding rounds in the UK. Analysis of PitchBook data shows that compared with the US and other major European markets, UK investors are more risk averse, and consequently reluctant to provide sufficient scale-up funding, giving rise to a structural investment funding gap that tends to undermine UK Greentech development. Public sector finance institutions perform an important role to close the Greentech investment gap, leveraging private finance through targeted support for Greentech companies at all stages of their development.

This study provides comparative empirical evidence on the fundraising outcomes and the post-funding performances of ventures supported by either business angels or crowd-investors. Building on a multi-year original dataset combining repeated annual surveys on both angels and equity crowdfunding (ECF) markets, we find that while investing in similar companies, ECF-backed ventures raise less capital than BA-backed ones, acquire a smaller percentage of capital and are less likely to raise follow-on equity financing. These results suggest that ECF and BA are imperfect substitutes that act as screening mechanisms of unobservable heterogenous firms with different risk profiles, growth trajectories and funding needs.

Purpose What compels business angels (BAs) to invest beyond financial returns? For many, it’s a deeper sense of calling—an alignment of purpose, values, and the desire to create lasting economic and societal impact. Traits like specialised skills, risk-taking, and a commitment to fostering innovation suggest that BAs may find profound meaning in their work. This paper aims to extend the Work as Calling Theory to the BAs’ context, analysing the impact of calling on BAs’ involvement in their work activities and on the value perceived from investing, referred to as the Angel Perceived Investment Value (APIV). Design/methodology/approach A questionnaire survey involving 869 BAs worldwide was carried out. Structural equation modelling was used to test the proposed research model. Findings The findings indicate a positive correlation between calling and both BAs’ involvement and APIV. Moreover, involvement was found to partially mediate the relationship between calling and APIV, contributing to perceptions of greater value. Originality/value This study is the first to analyse in depth the impacts of calling within the context of business angels (BAs), focusing specifically on the value they derive from their investment activities. It also uniquely examines the mediating role of involvement in tasks related to the startups, the angel groups and the ecosystem. This research offers actionable suggestions to help BAs better manage the expectations arising from their sense of calling while maximizing the value they derive from their investment activities.

Abstract Publicly funded business incubators serve as critical intermediaries in technology transfer ecosystems, yet their effectiveness is often constrained by bureaucratic requirements stemming from their government support. We examine how bureaucratic versus informal operational practices affect incubator performance in attracting private investment—a key indicator of successful technology commercialization. We analyze data from 167 publicly funded business incubators belonging to the European Business Incubator Centers Network. Specifically, we investigate how selection and coaching approaches influence investment from venture capitalists and business angels. We use hurdle models to capture the two-stage investment decision process and bivariate probit models to address unobserved factors driving investment decisions. We find that incubators adopting less bureaucratic practices attract significantly more private investment for their tenant firms, with informal selection procedures proving particularly important. Venture capitalists show stronger preferences than business angels for specialized coaching approaches that resemble their own mentoring practices. These findings reveal a fundamental tension in technology transfer organizations: while bureaucratic procedures aim to ensure accountability, they can simultaneously constrain the organization’s effectiveness in achieving its market-oriented objectives. We contribute to technology transfer literature by empirically demonstrating how bureaucratic practices affect performance in publicly funded organizations, identifying specific operational approaches that drive incubation outcomes, and providing insights for European innovation policy. We also offer practical implications for incubator managers seeking to optimize investment outcomes and policymakers designing accountability frameworks for innovation infrastructure.

Unveiling signaling processes in early-stage cross-border investment: Evidence from South African entrepreneurs and European business angels

To invest or not to invest the business Angel´s dilemma

Relevance of the topic: Modern companies spend a lot of time and money on implementing innovative activities. In the post-industrial era, these activities provide them with a competitive advantage, allowing them to survive in a constantly changing market environment. A business that produces and uses scientific and technical innovations becomes innovative. On the one hand, innovators who offer companies original ideas and investors, without whose financial support the functioning and development of innovative companies is impossible, play a major role in implementing this process. In this context, the study of general trends in the development of innovative business and the identification of existing problems is a topical scientific task. The aim of the article is to establish a typology of innovations and innovative technologies, analyze the types of innovative business and world experience, identify the problems of innovative business at the modern stage of Georgia's development and determine specific ways and directions for solving them. The object of the study is innovative business in Georgia, its development trends and features. Research methods: The paper uses quantitative and qualitative research methods. In addition, the analysis process uses systematic, economic-institutional, historical-dialectical, scientific abstraction, positive-normative, statistical analysis, prognostic, expert assessment, and diagnostic methods. Practical significance: This article provides politicians, business leaders, and academics with information about the practical steps that need to be taken to develop innovative business in Georgia. Results and discussion: 1. The share of companies engaged in innovative products in Georgia (small-6.6%, medium-11.4%, large-13%) is extremely low. The share of businesses engaged in research and development (R&D) in the country is about 6.8% (respectively, in the USA - 70, in France - 50, in Japan - 78 percent). In 2023, only 6.8% of industrial firms were engaged in the creation and adoption of innovations, and in 2024 this figure practically did not change. This indicates that not all innovative projects achieve the final result - a new product, and not all innovations find their customers. 2. The average age of equipment has exceeded 15-20 years, which is twice as high as in developed countries. The level of development of key industries in Georgia lags behind developed countries by 15-20 years. Companies are mainly engaged in cloning innovations (copying promising business solutions. In the 2023 Global Innovation Index (GII), Georgia moved to 65th place, and the country received one of the lowest scores in recent years (29.9). 3. The share of innovative companies is only 6% (last place among OECD countries), compared to 35% in Japan and Germany, and 55% in Denmark and Finland. Such a low level of innovative activity is associated with the low income of companies from the implementation of technological innovations against the background of increasing costs. In Georgia, there is no such important structure supporting innovative businesses as the National Association of Business Angels, whose function is to protect and develop the interests of individual venture investor organizations and early-stage venture funds. The constant outflow of capital plays a negative role in the Georgian In the development of innovative business. In 2023, this figure amounted to 81.2 million. USD, in 2012 - 56.8 million, the outflow of capital replaced its inflow in previous years. This process indicates the distrust of potential investors towards state agencies. Conclusion: Taking into account the above circumstances, the following steps are recommended for the development of Georgian innovative business: 1. In the long term, the state should develop a clear strategy for the country's innovative development, supported by the appropriate ideology of the attractiveness of innovative activities. 2. For the well-being of innovative business, an institutional environment should be created that meets the requirements of the country's innovative development. 3. The state should more actively use the program-targeted method of introducing innovations. 4. Like Great Britain, France and the USA, Georgia needs to develop a state administration and regulatory mechanism that ensures the implementation of innovative projects in priority areas. 4. The state should also use indirect methods of regulating innovation activities, namely legislative norms, tax measures, support for venture investors (business angels) and small and medium innovative businesses) on the basis of venture funds established with government support. Keywords: innovation, structure, business, directions, development, problems, Georgia.

Explaining the involvement and investment of women in business angel groups: The impact of organizational context and investment experience

Sustainable development, as outlined by the Sustainable Development Goals (SDGs), constitutes a critical agenda for global progress. However, the looming climate challenges impede the realization of these goals. Entrepreneurship emerges as a vital catalyst for economic growth and societal welfare, yet its traditional model faces challenges in the face of environmental degradation and resource scarcity. Sustainable entrepreneurship (SE), rooted in environmental preservation and societal benefit, holds promise in addressing these challenges. This article explores the nexus of financing and SE, recognizing the pivotal role of funding in fostering a sustainable business ecosystem. Drawing upon a comprehensive review of literature and bibliometric analysis conducted between December 2023 and January 2024, utilizing a dataset of 64 articles sourced from the Web of Science (WoS), this study delves into the intricacies of funding sustainable ventures. It scrutinizes the hurdles faced by sustainable entrepreneurs in accessing traditional financing avenues, including risks, market uncertainties and longer return on investment periods. The emergence of alternative financing methods, such as crowdfunding, venture capital (VC) and business angels (BAs), signifies a paradigm shift in funding sustainable ventures. These unconventional channels challenge the notion that sustainability compromises profitability for investors. By synthesizing existing knowledge and identifying research gaps, this review lays a robust groundwork for future investigations in this crucial domain. The systematic structure of this review encompasses the delineation of objectives and methodology, data analysis, insights derived from the study and concluding remarks with recommendations for future research. This article serves as a guide for scholars, practitioners and policymakers navigating the evolving landscape of SE financing, striving towards a greener and more prosperous future.

Plusieurs investisseurs s’aventurent à financer les firmes entrepreneuriales et les entreprises en démarrage innovatrices. Si la syndication d’investisseurs a fait l’objet de nombreux travaux, peu d’études se sont intéressées au co-investissement impliquant les sociétés de capital risque, les investisseurs providentiels (business angels) et les investisseurs par financement participatif (crowdfunding). Or, il est de plus en plus important d’analyser les interactions entre ces trois types de bailleurs de fonds ainsi que d’étudier les enjeux et les difficultés associés à la gouvernance cognitive et disciplinaire au sein de l’entreprise qu’ils financent. Ainsi, nous avons mené une large revue de littérature afin d’explorer les études traitant de l’apport sur les plans financier et cognitif des trois types d’investisseurs à la performance de l’entreprise et d’analyser leur influence sur sa croissance, dans le cas où ils sont impliqués tous les trois ou deux d’entre eux dans le processus de financement. Cela nous a permis d’avancer cinq propositions pouvant faire l’objet d’une étude qualitative.

Objectives: This study investigates the role of religious values in the investment decision-making process of Jewish business angels (BAs), highlighting how the Jewish ethos Tikkun Olam influences their behavior. The concept provides a motivational and attitudinal orientation that guides their investment choices. Method: To explore Tikkun Olam's influence, the research conducted in-depth interviews with 15 Jewish BAs of different nationalities (France, Brazil, and Israel). The sample size was determined based on the concept of theoretical saturation, ensuring that no new themes emerged after the 15 interviews. The interviews were analyzed using thematic analysis to identify dimensions related to Tikkun Olam in the respondents' narratives. Main results: The thematic analysis identified five main themes reflecting the influence of Tikkun Olam on the decision-making process of BAs. The first theme, "Collective Cohesion," showed that the respondents demonstrated a strong sense of responsibility toward their community, contributing through economic initiatives or altruistic help. The second theme, "Ethical Guidelines," highlighted how the pursuit of morality and consistency with personal and religious values guided investors to invest in ventures with a positive social impact. The third theme, "Improving the World," emphasized the investors' concern with social justice and environmental sustainability, driving them to seek companies that contribute to a better future. The fourth theme, "Never-Ending Search for Perfection," revealed a future-oriented mindset that encouraged investors to innovate and pursue changes that would improve the world. Finally, the fifth theme, "Belief in a Mystical Purpose," showed how belief in a higher power motivated investors to act with purpose, often basing their decisions on intuition and "gut feeling." Relevance / Originality and Theoretical Contributions: This study highlights how religious values shape BAs' decision-making, providing insights into how moral and religious elements influence high-risk investments. It also contributes to the literature by examining non-rational decision-making mechanisms, such as passion and intuition, and explores whether Jewish BAs exhibit distinct behaviors compared to non-religious BAs. The study proposes a conceptual framework that classifies the motivational and attitudinal orientations of investors based on Tikkun Olam. Managerial Contributions: Understanding moral biases allows BAs to refine their decision-making processes. Additionally, the study provides entrepreneurs with insights into the criteria that BAs use, facilitating better alignment between expectations and values.

A growing body of literature explores whether and why female and male entrepreneurs differ in their access to equity financing. This trend has led to an increasing fragmentation of the research field, as many studies analyze various mechanisms and focus on a certain form of equity financing. To advance research on gender differences in equity financing, it is necessary to identify patterns and inconsistent findings in the literature related to these mechanisms. Therefore, we perform a systematic literature review to provide an overview of the current state of knowledge on gender differences in the key forms of entrepreneurial equity financing (venture capital, angel investment, and equity crowdfunding). Based on 75 studies from 2001 to mid-2024, our review indicates that male entrepreneurs have an advantage in raising capital from venture capitalists and business angels, whereas female entrepreneurs are more successful in equity crowdfunding. These gender differences stem from a complex combination of mechanisms, which we categorize into four thematic dimensions that capture entrepreneurs’ characteristics, investors’ characteristics, the ventures’ characteristics and strategies, and contextual factors. We propose specific future research directions for each dimension, and discuss theoretical and methodological research opportunities that are applicable across dimensions to improve our understanding of gender differences in equity financing.