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)

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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.
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
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

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Project CodeAward NoProject NamePrincipal InvestigatorFunder's NameFunder RefLead Dept
190593Early Exit Strategies of Business Angel InvestorsColin MasonEconomic and Social Research Council (ESRC)ESRC/BSB/08BS - Management