Business Angel Exits: Strategies and Processes

Colin Mason, Richard Harrison, Tiago Botelho

Research output: Chapter in Book/Report/Conference proceedingChapter

2 Citations (Scopus)

Abstract

The ultimate purpose of investing in an entrepreneurial business is to achieve a financial return. Yet there is little discussion in the entrepreneurial finance literature on the exit process and only limited evidence on returns. This chapter focuses on business angels. It argues that the main challenge for business angels is in achieving an exit. Previous research indicates that returns from those exits that do occur are skewed: around half of all investments fail and only a small minority generate significant returns. We suggest that the difficulties in achieving profitable exits reflects, in part, the fact that most angels do not adopt an exit-centric approach to their investing. This involves considering the exit at all stages in the investment process, including the initial investment decision. The main features of an exit-centric investment strategy are discussed.
Original languageEnglish
Title of host publicationResearch Handbook on Entrepreneurial Finance
EditorsJaved Hussain, Jonathan Scott
Place of PublicationUnited Kingdom
PublisherEdward Elgar Publishing
Pages102-124
Number of pages22
ISBN (Print)9781783478781
DOIs
Publication statusPublished - 2015

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