TY - JOUR
T1 - Angels in the Crowd: The Role of Social Homophily and Peer Influence in Angel Investment
AU - Qin, Fei
AU - Mickiewicz, Tomasz
AU - Estrin, Saul
PY - 2020/7/29
Y1 - 2020/7/29
N2 - Business angels are financial providers, investing their own money into high-risk entrepreneurial assets, with a different set of motivations (more intrinsically motivated) and behaviours (more actively involved) from institutional investors. We offer a conceptualization of business angels as entrepreneurial decision-makers; individuals, whose actions are socially embedded. We investigate how the choice to engage as a business angel is affected by individual experience, the corresponding social experience of peer groups, and the interplay of the two. We test a multi-level model using a large dataset containing 1,287,997 individuals across 92 countries and 15 years. Our analysis reveals that meso-level peer influence has a significant effect on the likelihood that an individual becomes a business angel. It also acts to compensate for lack of individual entrepreneurial experience."
AB - Business angels are financial providers, investing their own money into high-risk entrepreneurial assets, with a different set of motivations (more intrinsically motivated) and behaviours (more actively involved) from institutional investors. We offer a conceptualization of business angels as entrepreneurial decision-makers; individuals, whose actions are socially embedded. We investigate how the choice to engage as a business angel is affected by individual experience, the corresponding social experience of peer groups, and the interplay of the two. We test a multi-level model using a large dataset containing 1,287,997 individuals across 92 countries and 15 years. Our analysis reveals that meso-level peer influence has a significant effect on the likelihood that an individual becomes a business angel. It also acts to compensate for lack of individual entrepreneurial experience."
U2 - 10.5465/AMBPP.2020.12581abstract
DO - 10.5465/AMBPP.2020.12581abstract
M3 - Article
SN - 0065-0668
JO - Academy of Management Proceedings
JF - Academy of Management Proceedings
ER -