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dc.contributor.authorCollewaert, Veroniek
dc.contributor.authorManigart, Sophie
dc.date.accessioned2017-12-02T14:52:13Z
dc.date.available2017-12-02T14:52:13Z
dc.date.issued2016
dc.identifier.doi10.1111/jsbm.12150
dc.identifier.urihttp://hdl.handle.net/20.500.12127/4678
dc.description.abstractThis paper examines how angel investors' human capital affects the valuation of their portfolio companies, based on the pre-money valuation of 123 investment rounds in 58 Belgian companies. We argue that angel investors with higher levels of human capital will perceive a higher value-creating potential in entrepreneurial opportunities through their ability to see more value-creating options, a higher value-adding potential post-investment and an enhanced legitimacy provided to the venture. Economic theories suggest they appropriate these rents through lower valuations, while stewardship theory suggests they share value creation with entrepreneurs. Consistent with stewardship theory, we show angel investors negotiate higher valuations when they have higher levels of human capital, more specifically if they studied longer, have a business degree, more entrepreneurial experience or previous professional law experience. As such, our results contrast with the behaviour of venture capital investors who negotiate lower valuations when they have more experience.
dc.language.isoen
dc.subjectBusiness Angels
dc.subjectEntrepreneurship
dc.subjectAngel Investors
dc.titleValuation of Angel-backed companies: The role of investor human capital
dc.identifier.journalJournal of Small Business Management
dc.source.volume54
dc.source.issue1
dc.source.beginpage373
dc.source.endpage391
vlerick.knowledgedomainAccounting & Finance
vlerick.knowledgedomainEntrepreneurship
vlerick.typearticleVlerick strategic journal article
vlerick.vlerickdepartmentEGS
vlerick.vlerickdepartmentA&F
dc.identifier.vperid76153
dc.identifier.vperid35884
dc.identifier.vpubid5567


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