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Informal investors and value added: What do we know and where do we go?

Politis, Diamanto LU and Gabrielsson, Jonas LU (2006)
Abstract
Informal investors have been highlighted as important stakeholders for potential high-growth ventures. Extant empirical research provides evidence that they contribute not only with money but also bring added value in terms of providing their skills and experience to support the continued development and growth of the ventures in which they have invested. However, despite the reported benefits of the value added provided by informal investors there are very few studies that explicitly address the issue of informal investors and value added. The present paper seeks to meet this shortcoming by presenting a review of state-of-the-art literature and research on informal venture capital and value added. The objective is to summarize what we... (More)
Informal investors have been highlighted as important stakeholders for potential high-growth ventures. Extant empirical research provides evidence that they contribute not only with money but also bring added value in terms of providing their skills and experience to support the continued development and growth of the ventures in which they have invested. However, despite the reported benefits of the value added provided by informal investors there are very few studies that explicitly address the issue of informal investors and value added. The present paper seeks to meet this shortcoming by presenting a review of state-of-the-art literature and research on informal venture capital and value added. The objective is to summarize what we know as a basis for where research should go in the future. The literature review identifies four main core functions provided by informal investors. The identification of different core functions is then used to guide future studies of informal investors and value added. The paper ends with a concluding summary. (Less)
Please use this url to cite or link to this publication:
author
organization
publishing date
type
Working Paper
publication status
unpublished
subject
keywords
venture capital, value added, Informal investors
language
English
LU publication?
yes
id
59ed144f-edef-40d0-9fcc-17f48e6db744 (old id 942006)
date added to LUP
2008-01-30 10:31:14
date last changed
2016-04-16 11:53:46
@misc{59ed144f-edef-40d0-9fcc-17f48e6db744,
  abstract     = {Informal investors have been highlighted as important stakeholders for potential high-growth ventures. Extant empirical research provides evidence that they contribute not only with money but also bring added value in terms of providing their skills and experience to support the continued development and growth of the ventures in which they have invested. However, despite the reported benefits of the value added provided by informal investors there are very few studies that explicitly address the issue of informal investors and value added. The present paper seeks to meet this shortcoming by presenting a review of state-of-the-art literature and research on informal venture capital and value added. The objective is to summarize what we know as a basis for where research should go in the future. The literature review identifies four main core functions provided by informal investors. The identification of different core functions is then used to guide future studies of informal investors and value added. The paper ends with a concluding summary.},
  author       = {Politis, Diamanto and Gabrielsson, Jonas},
  keyword      = {venture capital,value added,Informal investors},
  language     = {eng},
  title        = {Informal investors and value added: What do we know and where do we go?},
  year         = {2006},
}