Business angel exits: a theory of planned behaviour perspective

Botelho, T., Harrison, R. and Mason, C. (2021) Business angel exits: a theory of planned behaviour perspective. Small Business Economics, 57, pp. 583-602. (doi: 10.1007/s11187-019-00292-0)

Abstract

Although there are a handful of studies on business angel investment returns, the business angel literature has given little or no attention to exits and the exit strategy. This is surprising given that a primary objective of investing is to achieve a capital gain through some form of liquidity event. Using the theory of planned behaviour (TPB) as an interpretative heuristic, we examine how exits happen: specifically, what are the motivations to seek an exit and to what extent are they planned or opportunistic? Based on multiple case studies in which business angels were invited to tell the story of their most recent exit(s), the evidence suggests that the majority of liquidity events are the outcome of planned behaviour. We propose a typology of angel-backed investment exits as the basis for identifying future directions for research and developing practical advice to angels on effective business practices.

• Item Type: Articles
• Additional Information: This paper arises from research funded by the ESRC under its Co-Funded Pilot scheme (ref: ESRC/BSB/08). The co-funders were NESTA, BVCA, Lloyds-TSB and Invest NI.
• Status: Published
• Refereed: Yes
• Glasgow Author(s) Enlighten ID: Mason, Professor Colin
• Authors: Botelho, T., Harrison, R., and Mason, C.
• College/School: College of Social Sciences > Adam Smith Business School > Management
• Journal Name: Small Business Economics
• Publisher: Springer
• ISSN: 0921-898X
• ISSN (Online): 1573-0913
• Published Online: 14 December 2019
• Copyright Holders: Copyright © 2019 The Authors
• First Published: First published in Small Business Economics 57:583-602
• Publisher Policy: Reproduced under a Creative Commons License

Project Code	Award No	Project Name	Principal Investigator	Funder's Name	Funder Ref	Lead Dept
190593		Early Exit Strategies of Business Angel Investors	Colin Mason	Economic and Social Research Council (ESRC)	ESRC/BSB/08	BS - Management