Asia’s Impact Angels: How Business Angel Investing can Support Social Enterprise in Asia. Entrepreneurial Social Finance Working Paper No. 4 (2015) (original) (raw)

Finance or Philanthropy? Exploring the Motivations and Criteria of Impact Investors

Purpose – The growing prevalence of social entrepreneurship has been coupled with an increasing number of so-called “impact investors.” However, much remains to be learned about this nascent class of investors. To address the dearth of scholarly attention to impact investing, this study seeks to answer four questions that are central to understanding the phenomenon: What are the defining characteristics of impact investing? Do impact investors differ from traditional classes of investors and, if so, how? What are the motivations that drive impact investment? And, what criteria do impact investors use when evaluating potential investments? Design/methodology/approach – A partially inductive study based on semi-structured interviews with 31 investors and ethnographic observation was conducted to explore how impact investors differ from other classes of investors in their motivations and unique criteria used to evaluate ventures seeking investment. Findings – This study reveals that impact investors represent a unique class of investors that differs from socially responsible investing, from other types of for-profit investors, such as venture capitalists and angel investors, and from traditional philanthropists. The varied motivations of impact investors and the criteria they use to evaluate investments are identified. Originality / value – Despite the growing practitioner and media attention to impact investing, several foundational issues remain unaddressed. This study takes the first steps toward shedding light on this new realm of early-stage venture investing and clarifying its role in larger efforts of social responsibility.

Innovative corporate philanthropy in Asia (2017)

The article introduces the author's working paper comprising 23 case studies that explore how businesses in Asia are experimenting with innovative ways to provide financial, intellectual and human capital in support of high-potential nonprofits and social businesses.

Regional differences in impact investment: A theory of impact investing ecosystems

Social Responsibility Journal, 2019

Purpose: Impact investing, a type of values-based investing that combines financial investment with philanthropic goals, is receiving heightened scholarly and practitioner attention. The geography of impact investing, however, is largely unexamined and it is not clear why some impact investing communities are more vibrant than other regional communities. Regional differences in entrepreneurial activities are increasingly explained by differences in the vitality of entrepreneurial ecosystems, the set of interconnected forces that promote and sustain regional entrepreneurship. Yet scholars have not leveraged the insights from entrepreneurial ecosystems studies to understand the dynamics of communities that encourage and support impact investing. Design/methodology/approach: To explain inter-regional differences in the prevalence and intensity of impact investing, this conceptual paper draws from research on entrepreneurial ecosystems and impact investment to theorize about the ecosystem attributes and components that drive vibrant impact investing communities. Findings: It is theorized that vibrant impact investing ecosystems have three system-level attributes – diversity, cohesion, and coordination – that are influenced by the core components of the ecosystems, including the characteristics of investors, the presence of social impact support organizations, and cultural values that support blending logics. Originality/value: The theoretical model contributes to research on impact investing and hybrid forms of organizing, produces concrete implications for ecosystem builders, and sets an agenda for future research.

The real venture capitalists: a review of research on business angels

2008

Business angels are high net worth individuals who invest their own money, along with their time and expertise, in unquoted companies in which they have no family connection in the hope of financial gain. They are a distinctive source of finance for entrepreneurial businesses, making significantly more seed, start-up and early stage investments than venture capital funds. Governments are now increasingly targeting business angels as a means of increasing the supply of early stage venture capital. It is therefore puzzling why angel investing has attracted less attention from scholars than its significance deserves. This paper starts by making the case why entrepreneurship scholars should devote more attention to angel investing. It then reviews the research that has been undertaken on business angels and their investment activity since the seminal work of William Wetzel jr. published in 1981. The review covers definitional and measurement issues, angel profiles, the investment process (deal flow, screening and evaluation, negotiating and contracting, and post-investment relationships) and the evolution of the market. The paper concludes by suggesting priority areas for future research on the topic.