The paper takes a process perspective to examine how the entrepreneur-business angel (BA) investor relationship influences the initial investment decision, deal structure and post-investment stages leading to follow-on funding and investment deal outcomes. The paper considers social capital and network perspectives suggesting that the characteristics of a given entrepreneur (e.g. personality, experience, social and human capital) might interact with characteristics of the individual investor to influence decision-making in a way that is specific to a given investor–entrepreneur relationship. The paper also considers the concept of trust as a factor in facilitating collaboration, reducing agency and transaction costs, and improving a venture’s ability to adapt to complexity and ambiguity.
Gregson, Geoff and Harrison, Richard T.
"THE ENTREPRENEUR-BUSINESS ANGEL INVESTOR RELATIONSHIP: HOW DOES IT INFLUENCE INITIAL AND FOLLOW-ON INVESTMENT DECISIONS AND INVESTMENT OUTCOMES? (SUMMARY),"
Frontiers of Entrepreneurship Research: Vol. 33
, Article 5.
Available at: http://digitalknowledge.babson.edu/fer/vol33/iss1/5