An assessment of government funding of business angel networks: a regional study
Publication type
Working paperPublication Year
2007Publication Issue
16Publication Number of pages
28
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In this paper we evaluate whether government intervention through the public funding of business angel networks is warranted. Based on a regional study of four BANs, we find that these subsidies reach their goals in terms of contribution to economic development and reducing financing and information problems entrepreneurial companies face. However, they are partly based on the wrong assumptions as these companies are not (yet) value creating. Therefore, we advise caution in using the market failure argument as grounds for government intervention in the informal risk capital market.Knowledge Domain/Industry
Accounting & FinanceEntrepreneurship