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Open Access research with a European policy impact...

The Strathprints institutional repository is a digital archive of University of Strathclyde's Open Access research outputs. Strathprints provides access to thousands of Open Access research papers by Strathclyde researchers, including by researchers from the European Policies Research Centre (EPRC).

EPRC is a leading institute in Europe for comparative research on public policy, with a particular focus on regional development policies. Spanning 30 European countries, EPRC research programmes have a strong emphasis on applied research and knowledge exchange, including the provision of policy advice to EU institutions and national and sub-national government authorities throughout Europe.

Explore research outputs by the European Policies Research Centre...

Experience, heuristics and learning : the angel investment process

Smith, Donald J. and Harrison, R.T. and Mason, Colin (2010) Experience, heuristics and learning : the angel investment process. In: Frontiers of entrepreneurship research. Babson College, Babson Park, MA.

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Abstract

This paper extends the literature on the investment decision-making of business angels. Using insights from entrepreneurial learning theory we explore whether angels learn from experience, how they learn and what they learn. These issues are addressed using Verbal Protocol Analysis, a methodology for examining decision-making in real time, on three groups of business angels with differing levels of investment experience, and follow-up interviews with these angels. This reveals some differences in the speed of decision making and the emphasis given to various investment criteria. The relatively limited extent of the contrasts can be attributed to two factors. First, angel learning has been in terms of their approach to investing rather than fundamentals. Second, this learning has had more effect on how they conduct their due diligence on opportunities that pass their initial screening than on the initial screening stage itself. Learning from other investors is important.