Kauppakorkeakoulun julkaisuportaali
Aalto-yliopiston kauppakorkeakoulun gradujen tiedot nyt Aaltodocissa: Aaltodoc-julkaisuarkisto
Kauppakorkeakoulu | Rahoituksen laitos | Rahoitus | 2014
Tutkielman numero: 13765
Business angel investment decision-making criteria
Tekijä: Ahtila, Olli-Pekka
Otsikko: Business angel investment decision-making criteria
Vuosi: 2014  Kieli: eng
Laitos: Rahoituksen laitos
Aine: Rahoitus
Asiasanat: rahoitus; financing; sijoittajat; investors; riskirahoitus; venture capital; päätöksenteko; decision making
Sivumäärä: 86
» hse_ethesis_13765.pdf pdf  koko: 2 MB (1270671)
Avainsanat: business angels; investment decision-making; investment criteria; rejection criteria

The purpose of the thesis is to provide new evidence and address the partially lacking understanding of business angel decision-making. This thesis studies the issue by investigating both the investment criteria and the rejection criteria business angels use to decide whether an opportunity should advance beyond the initial screening stage to the due diligence. The study focuses on the pitch meetings, in which entrepreneurs try to sell their ideas and equity to business angels in exchange for capital.


The unique hand-coded data on business angels is sourced from a TV show called the Dragons' Den. By analysing the latest two UK production seasons, I was able to observe the decision-making process of seven business angels, of which three were female. The total number of observed pitch meetings amounts to 129, which consists of 27 successful pitches and 102 declined ones. The empirical evidence of business angel rejection criteria is based on 241 rejection reason provided by the investors. The above-average sample size is considered to be reasonable in the area of studying business angel decision-making.


The results suggest that business angels invest primarily in early stage or start-up companies seeking for expansion financing. In their investment decision-making, business angels place emphasis on the entrepreneur, product and financials and intend to add value by taking hands-on roles. On the other hand, the partially contradictory findings to prior literature suggest, that the most important rejection criteria are related to financials, product and market. My findings also suggest that the investor fit criteria and investors' gender is affecting the decision-making of business angels.
Verkkojulkaisut ovat tekijänoikeuden alaista aineistoa. Teokset ovat vapaasti luettavissa ja tulostettavissa henkilökohtaista käyttöä varten. Aineiston käyttö kaupallisiin tarkoituksiin on kielletty.