Informal Venture Capital

1. Front Matter

   Pages i-xv

   PDF

2. Entrepreneurship and Venture Capital

   1. Entrepreneurship and Venture Capital

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 1-20

3. Informal Venture Capital in Finland: Investors and Investments

   1. Front Matter

      Pages 21-21

      PDF

   2. Methodology

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 23-28

   3. The Characteristics of Business Angels

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 29-34

   4. Deal Flow

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 35-40

   5. Investment Activity

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 41-51

   6. The Modus Operandi of Business Angels

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 53-57

   7. Investment Motives and Decision-Making

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 59-67

   8. The Value-Added Contribution of Business Angels

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 69-74

   9. Investment Performance

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 75-84

   10. Future Investment Activity

       • Annareetta Lumme, Colin Mason, Markku Suomi

       Pages 85-93

   11. The Size of the Informal Venture Capital Market in Finland

       • Annareetta Lumme, Colin Mason, Markku Suomi

       Pages 95-100

4. Policy Issues

   1. Front Matter

      Pages 101-101

      PDF

   2. Promoting Informal Venture Capital: Some Preliminary Considerations

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 103-108

   3. Promoting Informal Venture Capital: I. Business Introduction Services

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 109-132

   4. Promoting Informal Venture Capital: II. Co-Investing, Syndication and Indirect Investment Models

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 133-145

   5. Promoting Informal Venture Capital: III Tax Incentives

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 147-153

   6. Conclusion

      • Annareetta Lumme, Colin Mason, Markku Suomi

      Pages 155-163

5. Back Matter

   Pages 165-178

   PDF

Small businesses in virtually all industrialized countries find it increasingly difficult to obtain finance from institutional sources. Banks have become more risk-averse; venture capital funds, previously of only marginal significance, are now often concentrating their investments on established companies; and management buyouts and buyins and pressures to reduce government spending have resulted in a reduction in public policy initiatives. In this context there is a growing interest in the role of the informal venture capital market as an alternative source of risk finance for small business.
Informal Venture Capital: Investors, Investments and Policy Issues in Finland investigates the phenomenon of `business angels' - wealthy private individuals who invest in small businesses - who are increasingly recognized throughout the developed world as representing the most important source of venture capital for entrepreneurial businesses in their start-up and early growth stages. This volume answers key questions about these investors, and contributes significant new evidence on aspects of the informal venture capital market which have not been examined in previous studies. It further provides an authoritative assessment of the effectiveness of policy initiatives to stimulate the supply of informal venture capital, based on the experiences in Finland.

• Buyout
• Finance
• Funds
• Investment
• Investments
• Rating
• Venture Capital

• Kera Ltd., UK

  Annareetta Lumme

• University of Southampton, UK

  Colin Mason

• Helsinki University of Technology, Finland

  Markku Suomi

Policies and ethics