This chapter examines the flow of information on investment opportunities. Four questions are examined. How many investment opportunities do business angels consider per year? How many of these opportunities are rejected and how many are accepted? Where do business angels derive their information on investment opportunities? What are the best sources of information on investment opportunities?
KeywordsVenture Capital Investment Opportunity Active Investor Referral Source Venture Capital Fund
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Notes to Chapter 4
- 1.Both proportions are higher than in the early 1990s: for example, in 1993 only 18% of opportunities passed the initial screening stage and just 4% of opportunities received funding (Jänkälä, 1994).Google Scholar
- 2.Such comparisons must be treated cautiously, firstly because of ambiguity in the definition of what constitutes an ‘investment opportunity’, and second, because venture capitalists keep detailed statistics on the investment opportunities they receive whereas most business angels do not.Google Scholar