How do business angels' human- and financial capital contribute to the start-up early-stage development?
(2025) ENTN19 20251Department of Business Administration
- Abstract
- This thesis explores how business angels’ (BA’s) human- and financial capital contribute to the early-stage development of start-ups. While previous literature has extensively discussed BAs' financial roles, the combined effect of both capital types, particularly in relation to relational trust, remains underexplored. Addressing this gap, the study applies a qualitative approach, interviewing early-stage start-up founders and BA ́s active in the Skåne region of Sweden.
The findings reveal that while financial capital acts as a crucial bridge for survival, especially in navigating the “valley of death,” human capital, such as mentorship, strategic guidance, and network access, often provides long-term value. Importantly, the... (More) - This thesis explores how business angels’ (BA’s) human- and financial capital contribute to the early-stage development of start-ups. While previous literature has extensively discussed BAs' financial roles, the combined effect of both capital types, particularly in relation to relational trust, remains underexplored. Addressing this gap, the study applies a qualitative approach, interviewing early-stage start-up founders and BA ́s active in the Skåne region of Sweden.
The findings reveal that while financial capital acts as a crucial bridge for survival, especially in navigating the “valley of death,” human capital, such as mentorship, strategic guidance, and network access, often provides long-term value. Importantly, the effectiveness of either form of capital depends on the start-up’s specific needs at the time, as well as the strength of the relationship between the BA and the founder.
The study highlights that trust, mutual alignment, and personal chemistry significantly shape how BA resources are deployed. Active angels with relevant industry knowledge and personal motivation were seen as most impactful. These insights contribute to entrepreneurial literature by showing that it is not the presence of capital alone, but its contextual use and relational foundation, that drive early-stage development. (Less)
Please use this url to cite or link to this publication:
http://lup.lub.lu.se/student-papers/record/9204150
- author
- Veikonheimo, Lotta LU and Klessens, Coen LU
- supervisor
- organization
- course
- ENTN19 20251
- year
- 2025
- type
- H1 - Master's Degree (One Year)
- subject
- keywords
- Business Angels, Human Capital, Financial Capital, Start-Up Development, Early-Stage Investment, Trust
- language
- English
- id
- 9204150
- date added to LUP
- 2025-06-24 10:01:05
- date last changed
- 2025-06-24 10:01:05
@misc{9204150,
abstract = {{This thesis explores how business angels’ (BA’s) human- and financial capital contribute to the early-stage development of start-ups. While previous literature has extensively discussed BAs' financial roles, the combined effect of both capital types, particularly in relation to relational trust, remains underexplored. Addressing this gap, the study applies a qualitative approach, interviewing early-stage start-up founders and BA ́s active in the Skåne region of Sweden.
The findings reveal that while financial capital acts as a crucial bridge for survival, especially in navigating the “valley of death,” human capital, such as mentorship, strategic guidance, and network access, often provides long-term value. Importantly, the effectiveness of either form of capital depends on the start-up’s specific needs at the time, as well as the strength of the relationship between the BA and the founder.
The study highlights that trust, mutual alignment, and personal chemistry significantly shape how BA resources are deployed. Active angels with relevant industry knowledge and personal motivation were seen as most impactful. These insights contribute to entrepreneurial literature by showing that it is not the presence of capital alone, but its contextual use and relational foundation, that drive early-stage development.}},
author = {{Veikonheimo, Lotta and Klessens, Coen}},
language = {{eng}},
note = {{Student Paper}},
title = {{How do business angels' human- and financial capital contribute to the start-up early-stage development?}},
year = {{2025}},
}