Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/264423 
Year of Publication: 
2022
Citation: 
[Journal:] The Journal of Entrepreneurial Finance (JEF) [ISSN:] 1551-9570 [Volume:] 24 [Issue:] 2 [Article No.:] 2 [Publisher:] The Academy of Entrepreneurial Finance (AEF) [Place:] Los Angeles, CA [Year:] 2022 [Pages:] 38-58
Publisher: 
The Academy of Entrepreneurial Finance (AEF), Los Angeles, CA
Abstract: 
Business angels (BAs) and venture capitalists (VCs) are important sources of finance for entrepreneurs in emerging markets for raising start-up and growth capital. Recognising that entrepreneurial investment evaluation decision-making is a highly complex process, and that there are limited studies focused on evaluation criteria used by both BAs and VCs', this article undertakes an empirical investigation by identifying, classifying and statistically testing the rank importance of investment criteria in South Africa from an early-stage entrepreneurial perspective. Results indicate that the rank importance for the different investment criteria is relatively similar for VCs and BAs, and the only ranking difference observed was on the team preparedness and team attributes, relevant for early-stage entrepreneurs. An empirical study of this nature is important as unique insights emerge from testing multiple investment evaluation criteria used by VCs, BAs and early-stage entrepreneurs in an African emerging country context.
Subjects: 
Venture Capitalists
Business Angels
Entrepreneurial Decision-Making
Investment Evaluation Criteria
Early-Stage Entrepreneurs
South Africa
JEL: 
G21
G32
L26
O4
M1
M13
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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