Entrepreneurial Firms and Bank Financing: Do Business Angels Play a Role?
ABSTRACT This paper investigates the contribution provided by business angels' (BAs) post‐investment intervention to the interaction between young entrepreneurial firms and bank lending decisions within the entrepreneurial finance ecosystem. The analysis relies on a data set comprising 114 Italian BA‐backed firms over the 2010–2018 period, alongside 498 matched firms. We find evidence that BAs' support makes it easier for entrepreneurial firms to raise follow‐on bank financing. Additionally, we document the positive effects of both BAs' entrepreneurial experience and soft monitoring. These effects can be attributed to BAs' value‐added contributions and their role in mitigating information asymmetries perceived by debt providers.
Authors
- Nicola Carta (ORCID: https://orcid.org/0000-0003-2608-4524)
- Ugo Rigoni (ORCID: https://orcid.org/0000-0002-0892-4588)
- Vincenzo Capizzi (ORCID: https://orcid.org/0000-0003-3761-9942)
- Elisa Cavezzali (ORCID: https://orcid.org/0000-0003-0461-239X)
Institutions
- Università degli Studi del Piemonte Orientale “Amedeo Avogadro” (IT)
- Ca' Foscari University of Venice (IT)
Publication Details
- Journal
- European Financial Management
- Published
- 2024-12-13
- DOI
- https://doi.org/10.1111/eufm.12537
- Citations
- 2
- Primary Topic
- Private Equity and Venture Capital
- Type
- article
- Field-Weighted Citation Impact
- 1.89
Funders
- Università Bocconi