This paper formalizes and estimates the process of search and matching between entrepreneurs and financiers in the business angel (BA) market. Our theoretical model describes the market for entrepreneurial finance as a fair in which the two sides of the market can meet bilaterally and transform a rough entrepreneurial idea into a real start-up firm. We then collect a new dataset from the BA markets of 17 developed countries for the period 1996-2014, and we estimate the aggregate matching function expressing the number of deals as a function of the number of submitted entrepreneurial projects and of business angels. Empirical findings confirm the technological features assumed in the theoretical literature: positive and decreasing marginal returns to both inputs (stepping on toes effect), technological complementarity across the two inputs (thick market effect) and constant returns to scale. We discuss the theoretical and policy implications of these findings.

Entrepreneurs meet financiers: Evidence from the business angel market / Cipollone, Angela; Giordani, Paolo. - In: JOURNAL OF BUSINESS VENTURING. - ISSN 0883-9026. - 34:5(2019), pp. 1-45. [10.1016/j.jbusvent.2018.11.003]

Entrepreneurs meet financiers: Evidence from the business angel market

Giordani, Paolo E.
2019

Abstract

This paper formalizes and estimates the process of search and matching between entrepreneurs and financiers in the business angel (BA) market. Our theoretical model describes the market for entrepreneurial finance as a fair in which the two sides of the market can meet bilaterally and transform a rough entrepreneurial idea into a real start-up firm. We then collect a new dataset from the BA markets of 17 developed countries for the period 1996-2014, and we estimate the aggregate matching function expressing the number of deals as a function of the number of submitted entrepreneurial projects and of business angels. Empirical findings confirm the technological features assumed in the theoretical literature: positive and decreasing marginal returns to both inputs (stepping on toes effect), technological complementarity across the two inputs (thick market effect) and constant returns to scale. We discuss the theoretical and policy implications of these findings.
2019
Entrepreneurial finance, Angel investors, Matching function estimation, Constant returns to scale
Entrepreneurs meet financiers: Evidence from the business angel market / Cipollone, Angela; Giordani, Paolo. - In: JOURNAL OF BUSINESS VENTURING. - ISSN 0883-9026. - 34:5(2019), pp. 1-45. [10.1016/j.jbusvent.2018.11.003]
File in questo prodotto:
File Dimensione Formato  
matching function_NOV_2018_tables.pdf

Open Access dal 07/12/2021

Tipologia: Documento in Post-print
Licenza: DRM (Digital rights management) non definiti
Dimensione 870.39 kB
Formato Adobe PDF
870.39 kB Adobe PDF Visualizza/Apri
1-s2.0-S088390261730215X-main.pdf

Solo gestori archivio

Tipologia: Versione dell'editore
Licenza: DRM (Digital rights management) non definiti
Dimensione 1.47 MB
Formato Adobe PDF
1.47 MB Adobe PDF   Visualizza/Apri
Pubblicazioni consigliate

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11385/182254
Citazioni
  • Scopus 10
  • ???jsp.display-item.citation.isi??? 10
social impact