Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Beyond Full-Time: A Behavioral Model of Business Angel Evaluation of Hybrid Entrepreneurial Teams in Venture Financing

Adil, Zarish LU and Duckham, Sheldon LU (2025) ENTN19 20251
Department of Business Administration
Abstract
This thesis investigates how business angel investors interpret and evaluate hybrid entrepreneurial teams, startups led by founders who retain salaried employment while launching their ventures. While hybrid entrepreneurship is increasingly common, it challenges traditional heuristics around founder commitment, team scalability, and investability in early-stage finance. Drawing on ten qualitative interviews with Swedish business angels and applying the Gioia methodology, the study uncovers how investors make sense of hybrid status under conditions of uncertainty and limited formal metrics.
The findings identify three interrelated evaluative dimensions: commitment, trust, and scalability. These dimensions are interpreted through the... (More)
This thesis investigates how business angel investors interpret and evaluate hybrid entrepreneurial teams, startups led by founders who retain salaried employment while launching their ventures. While hybrid entrepreneurship is increasingly common, it challenges traditional heuristics around founder commitment, team scalability, and investability in early-stage finance. Drawing on ten qualitative interviews with Swedish business angels and applying the Gioia methodology, the study uncovers how investors make sense of hybrid status under conditions of uncertainty and limited formal metrics.
The findings identify three interrelated evaluative dimensions: commitment, trust, and scalability. These dimensions are interpreted through the theoretical lenses of signaling theory, attribution theory, and impression management, which together explain how behavioral signals, narrative framing, and contextual cues shape investment logic. Rather than disqualifying hybrid entrepreneurs, business angels assess the credibility of their transition strategies, equity alignment, and leadership trajectory. Trust emerges as a relational judgment informed by consistency, coachability, and delivery, while scalability is viewed as a function of organizational readiness and team dynamics, not just product-market fit.
Investor decisions are further influenced by contextual moderators such as sector norms, investment philosophy, and cap table structure. The study contributes to the fields of entrepreneurial finance and hybrid entrepreneurship by offering a nuanced, theory-informed model of how business angels evaluate founders beyond conventional metrics. It also offers practical insights for hybrid entrepreneurs seeking to build trust and legitimacy in early-stage fundraising by managing perceptions and aligning signals with strategic intent. (Less)
Please use this url to cite or link to this publication:
author
Adil, Zarish LU and Duckham, Sheldon LU
supervisor
organization
course
ENTN19 20251
year
type
H1 - Master's Degree (One Year)
subject
keywords
Hybrid Entrepreneurship, Business Angels, Early-Stage Investment, Entrepreneurial Evaluation, Founder Commitment, Scalability, Trust Formation, Signaling Theory, Attribution Theory, Impression Management, Interpretive Decision-Making, Investor Heuristics, Cap Table Clarity, Entrepreneurial Finance.
language
English
id
9204533
date added to LUP
2025-06-24 09:57:56
date last changed
2025-06-24 09:57:56
@misc{9204533,
  abstract     = {{This thesis investigates how business angel investors interpret and evaluate hybrid entrepreneurial teams, startups led by founders who retain salaried employment while launching their ventures. While hybrid entrepreneurship is increasingly common, it challenges traditional heuristics around founder commitment, team scalability, and investability in early-stage finance. Drawing on ten qualitative interviews with Swedish business angels and applying the Gioia methodology, the study uncovers how investors make sense of hybrid status under conditions of uncertainty and limited formal metrics.
The findings identify three interrelated evaluative dimensions: commitment, trust, and scalability. These dimensions are interpreted through the theoretical lenses of signaling theory, attribution theory, and impression management, which together explain how behavioral signals, narrative framing, and contextual cues shape investment logic. Rather than disqualifying hybrid entrepreneurs, business angels assess the credibility of their transition strategies, equity alignment, and leadership trajectory. Trust emerges as a relational judgment informed by consistency, coachability, and delivery, while scalability is viewed as a function of organizational readiness and team dynamics, not just product-market fit.
Investor decisions are further influenced by contextual moderators such as sector norms, investment philosophy, and cap table structure. The study contributes to the fields of entrepreneurial finance and hybrid entrepreneurship by offering a nuanced, theory-informed model of how business angels evaluate founders beyond conventional metrics. It also offers practical insights for hybrid entrepreneurs seeking to build trust and legitimacy in early-stage fundraising by managing perceptions and aligning signals with strategic intent.}},
  author       = {{Adil, Zarish and Duckham, Sheldon}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Beyond Full-Time: A Behavioral Model of Business Angel Evaluation of Hybrid Entrepreneurial Teams in Venture Financing}},
  year         = {{2025}},
}