Angel investment decision making as a learning process

Colin Mason

Research output: Book/ReportOther report

Abstract

This paper extends the literature on the investment decision-making of business angels. Using insights from entrepreneurial learning theory, particularly the use of heuristics and the nature of learning from meagre experience, we explore whether angels learn from experience, how they learn and what they learn. These
issues are addressed using verbal protocol analysis, a methodology for examining decision-making in real time, on three groups of business angels with differing levels of investment experience, and on follow-up interviews with these angels. This reveals some differences in the speed of decision making and the emphasis given to various investment criteria. There is some evidence for the use of heuristics in the decision making process, and for the critical role played by vicarious learning from the experience of others. Learning in the individual angel decision making process is a social as well as individual phenomenon.
Original languageEnglish
PublisherUniversity of Strathclyde
Publication statusPublished - 2010

Fingerprint

Decision-making process
Heuristics
Investment decision-making
Business angels
Learning process
Decision making
Entrepreneurial learning
Learning theory
Investment criteria
Vicarious learning
Protocol analysis
Verbal protocols
Methodology

Keywords

  • angel investment
  • entrepreneurial learning theory
  • business angels

Cite this

Mason, C. (2010). Angel investment decision making as a learning process. University of Strathclyde.
Mason, Colin. / Angel investment decision making as a learning process. University of Strathclyde, 2010.
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Mason, C 2010, Angel investment decision making as a learning process. University of Strathclyde.

Angel investment decision making as a learning process. / Mason, Colin.

University of Strathclyde, 2010.

Research output: Book/ReportOther report

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AB - This paper extends the literature on the investment decision-making of business angels. Using insights from entrepreneurial learning theory, particularly the use of heuristics and the nature of learning from meagre experience, we explore whether angels learn from experience, how they learn and what they learn. These issues are addressed using verbal protocol analysis, a methodology for examining decision-making in real time, on three groups of business angels with differing levels of investment experience, and on follow-up interviews with these angels. This reveals some differences in the speed of decision making and the emphasis given to various investment criteria. There is some evidence for the use of heuristics in the decision making process, and for the critical role played by vicarious learning from the experience of others. Learning in the individual angel decision making process is a social as well as individual phenomenon.

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Mason C. Angel investment decision making as a learning process. University of Strathclyde, 2010.