Why investing in " good " goes a long way (2017) (original) (raw)
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Man is endowed with unfathomable capabilities and potentialities. Innovation and creativity are the byproduct of unbridled thinking and companion out of necessity. Necessity is the mother of invention. One such invention of sponsoring ideas which is capturing the fast of all new age entrepreneurs is the concept angel investment. It is an innovative form of informal financing of idea by High Networth Individuals (HNI). The emerging leaders coming out from top notch technical and management institution are resorting to angel investor to finance their innovative ideas. The result is innovative products and services for the customer in the information driven and knowledge economy. The angel investment is as old as Columbus era. Angel investors are very important for small and medium sized enterprises because they provide more than money. They are hands-on investors and contribute their skills, expertise, knowledge and contacts in the businesses they invest in. The latest is sponsoring of ecommerce stores which are shrilling and talk of the town business. The present paper narrates the leading case study of angel investment both in western and developing countries including India. Angel investors are fueling and acting as growth engine for the social and economic development. Many observers consider angel investments to be one of the key drivers behind the startup and the growth of new businesses, despite a paucity of information to confirm whether or not this is true. The budding new generation entrepreneur are nourished and nurtured by the variant and enlightened angel investor across the countries in the world including India.
Business angels: who they really are
Strategic Change, 2009
Financing is a critical issue for the survival and development of small and medium-sized enterprises. Business angels play a key role in financing these enterprises, especially innovative ones with high growth potential. Business angels fill the gap between founders, family, and friends on one side, and institutional venture capital funds on the other side, as a financing source. Business angels invest a large amount of money in seed, start-up, and early-stage enterprises.Business angels are important for small and medium-sized enterprises because they provide more than money. They are hands-on investors and contribute their skills, expertise, knowledge, and contacts in the businesses they invest in. They are wealthy persons with great business experience, willing to invest and offer their wealth and knowledge to owners and to entrepreneurs to start or develop their businesses.Business angels like to remain anonymous, so many ideas cannot be implemented. To address this issue, many countries establish business angel syndicates and networks to facilitate the process of matching entrepreneurs and business angels.Financing is a critical issue for the survival and development of small and medium-sized enterprises. Business angels play a key role in financing these enterprises, especially innovative ones with high growth potential. Business angels fill the gap between founders, family, and friends on one side, and institutional venture capital funds on the other side, as a financing source. Business angels invest a large amount of money in seed, start-up, and early-stage enterprises.Business angels are important for small and medium-sized enterprises because they provide more than money. They are hands-on investors and contribute their skills, expertise, knowledge, and contacts in the businesses they invest in. They are wealthy persons with great business experience, willing to invest and offer their wealth and knowledge to owners and to entrepreneurs to start or develop their businesses.Business angels like to remain anonymous, so many ideas cannot be implemented. To address this issue, many countries establish business angel syndicates and networks to facilitate the process of matching entrepreneurs and business angels.Copyright © 2009 John Wiley & Sons, Ltd.
Characteristics and Determinants of Informal Investment in Singapore
"Since Wetzel (1982, 1983) identified the business angel as a primary source of risk capital, there has been increased interest in the role of informal investors in the formation of new business ventures in the developed OECD countries. However, there remains little known about informal investors in developing or newly industrialized economies such as Singapore. Based on data collected using the Global Entrepreneurship Monitor (GEM) methodology (Reynolds et al.,2002), this paper examines the characteristics of informal investors in Singapore, and analyses the key determinant factors that differentiate individuals who become informal investors from those who do not make informal investments. In particular, we examine if these factors differ depending on the relationship between the investor and entrepreneur. We also investigate the differences between determinants of higher and lower value investment propensities. The findings reveal that knowing entrepreneurs personally was the factor with the strongest influence on informal investing propensity in Singapore. Other findings suggest that informal investing propensity in Singapore is less influenced by demographic factors and income, and more by prior entrepreneurial experience and self-perceived skills with new business formation. KEY WORDS: Informal investment, entrepreneurial ventures, business angels, Singapore, risk capital"
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.
Sources of Funding for New Zealand Entrepreneurs
“Attract financial backing will be essential”. Entrepreneurs don’t have a lot of time and yet they have many urgent needs. In turn, the world has always been and will always be in desperate need of entrepreneurs. They take a brilliant idea and make a flourishing business out of it. They are the life blood of the economy that is required to create new wealth. They help sustain people within their economies and communities across the world. That’s why I’ve written this easily digestible book. It’s packed with information condensed down to a form that you can consume easily about how to attract that financial backing. Entrepreneurship is what has made many nations great historically. New Zealand is a good example. This is the challenge for New Zealanders today and for government of whatever hue. We need to create an environment in which the next generation of entrepreneurs will pick up the challenge, and grow the wealth back into this country for the benefit of themselves and for our people as a whole. It is my hope that this small book will motivate the many people who articulate the value of entrepreneurship to ask the next set of questions and do something about them so that New Zealand becomes a magnet for entrepreneurs and we all benefit from their energy and efforts. This book is a great starting point for those who are up to the challenge!
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.