The equity financing market for entrepreneurial companies has been documented to be characterized by inefficiencies. Firstly, there is a substantial gap between the demand and supply of early-stage capital, the capital gap. Secondly, there is an important information gap because of the inefficient flow of information between investors and entrepreneurs, which is an inefficiency especially prevalent in the informal venture capital market. Among the measures taken to solve the inefficiencies in this market was the foundation of business angel networks (BANs), aimed at matching entrepreneurs and business angels (BAs). Given the perceived failures in the private equity market, most European BANs have been publicly funded and supported. The question the proposed research tackles is to understand whether this is government money well spent, i.e. whether BANs provide a return to society that exceeds the public money spent on running the networks.