Business angels and value added: what do we know and where do we go?

Research output: Contribution to journalArticle


Business angels have been highlighted as important stakeholders for potential high-growth ventures. Extant empirical research provides evidence that they not only contribute with money but also bring added value to the ventures in which they have invested. However, despite the reported benefits of the value added provided by these investors there are very few studies that try to conceptualize this important issue. The present study seeks to meet this shortcoming by presenting a review of literature and research on business angels and value added. The overall objective is to recognize the range of value added activities that business angels have been reported to perform, aggregate the findings into a set of distinct but complementary value adding roles, and then link these roles to theoretical perspectives that explain why they have the potential to contribute to added value. Four different value added roles performed by informal investors are presented together with an explanation of how they can be seen as complementary to each other. The following discussion is then used to guide future studies of business angels and value added towards areas where our knowledge is still limited.


Research areas and keywords

Subject classification (UKÄ) – MANDATORY

  • Business Administration


  • business angels, value added, informal venture capital
Original languageEnglish
Pages (from-to)127-147
Number of pages21
JournalVenture Capital: An International Journal of Entrepreneurial Finance
Issue number2
Publication statusPublished - 2008
Publication categoryResearch