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Business Angel Investment Process: A study on how fundamentals and experiential learning shape the investment process of Business Angels

Schulz, Tim LU and Schmücker, Jan-Niklas LU (2017) ENTN19 20171
Department of Business Administration
Abstract
Purpose – This research attempts to add to the understanding of how BAs shape their
investment process and how different forms of experience influence this process. By this we
will further build on the findings of Harrison et al. (2015) and aim to answer the questions:
‘How do BAs’ fundamentals and investment experiences shape their applied investment
strategies and criteria? and ‘Is their experiential learning process limitless or is it completed
at some point?’

Methodology – This research was conducted in alignment with a qualitative research
approach. Our findings are derived from semi-structured interviews held with five BAs. A
cross case analysis was conducted to establish how their fundamentals and experiential
learning... (More)
Purpose – This research attempts to add to the understanding of how BAs shape their
investment process and how different forms of experience influence this process. By this we
will further build on the findings of Harrison et al. (2015) and aim to answer the questions:
‘How do BAs’ fundamentals and investment experiences shape their applied investment
strategies and criteria? and ‘Is their experiential learning process limitless or is it completed
at some point?’

Methodology – This research was conducted in alignment with a qualitative research
approach. Our findings are derived from semi-structured interviews held with five BAs. A
cross case analysis was conducted to establish how their fundamentals and experiential
learning from conducted investments influence their investment process and criteria and if
experiential learning is limited.

Findings – The research shows that most of the BAs’ investment criteria and strategies are
shaped by the outcome of experiential learning from investing. Fundamentals usually
influence the investments process after a certain amount of experiential learning was
collected. Apart from that, three paths were revealed in which investment criteria and
strategies can develop – the flexible, the semi-flexible and the fixed path.

Research limitations – This research is limited to a certain scope of people, regarding the
geographical location, investment scope and investment experience, as well as to its
qualitative approach when it comes to the method used; namely semi-structured interviews.
The information collected is a momentary sample, which only reflects a small group of
investors.

Practical implications –This research will offer advice to novice and experienced BAs to
consciously reflect on their fundamentals and previously gained investment experience and by
that allow them to actively influence their investment strategy and criteria in the future. (Less)
Please use this url to cite or link to this publication:
author
Schulz, Tim LU and Schmücker, Jan-Niklas LU
supervisor
organization
course
ENTN19 20171
year
type
H1 - Master's Degree (One Year)
subject
keywords
BA, fundamentals, experiential learning, investment process, investment criteria
language
English
id
8917717
date added to LUP
2017-07-03 16:35:44
date last changed
2017-07-03 16:35:44
@misc{8917717,
  abstract     = {Purpose – This research attempts to add to the understanding of how BAs shape their
investment process and how different forms of experience influence this process. By this we
will further build on the findings of Harrison et al. (2015) and aim to answer the questions:
‘How do BAs’ fundamentals and investment experiences shape their applied investment
strategies and criteria? and ‘Is their experiential learning process limitless or is it completed
at some point?’

Methodology – This research was conducted in alignment with a qualitative research
approach. Our findings are derived from semi-structured interviews held with five BAs. A
cross case analysis was conducted to establish how their fundamentals and experiential
learning from conducted investments influence their investment process and criteria and if
experiential learning is limited.

Findings – The research shows that most of the BAs’ investment criteria and strategies are
shaped by the outcome of experiential learning from investing. Fundamentals usually
influence the investments process after a certain amount of experiential learning was
collected. Apart from that, three paths were revealed in which investment criteria and
strategies can develop – the flexible, the semi-flexible and the fixed path.

Research limitations – This research is limited to a certain scope of people, regarding the
geographical location, investment scope and investment experience, as well as to its
qualitative approach when it comes to the method used; namely semi-structured interviews.
The information collected is a momentary sample, which only reflects a small group of
investors.

Practical implications –This research will offer advice to novice and experienced BAs to
consciously reflect on their fundamentals and previously gained investment experience and by
that allow them to actively influence their investment strategy and criteria in the future.},
  author       = {Schulz, Tim and Schmücker, Jan-Niklas},
  keyword      = {BA,fundamentals,experiential learning,investment process,investment criteria},
  language     = {eng},
  note         = {Student Paper},
  title        = {Business Angel Investment Process: A study on how fundamentals and experiential learning shape the investment process of Business Angels},
  year         = {2017},
}