Select, control and support: the Business Angel credo to reduce company’s risk

Tessier, Luc

Select, control and support: the Business Angel credo to reduce company’s risk - 2020.


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This article proposes to discuss the extent to which the support of business angels contributes to reducing the risk of entrepreneurial failure. Elements explaining the impact of this support are provided based on a qualitative survey of ten entrepreneur-business angel pairs through semi-structured interviews. This study was conducted between October 2015 and February 2016 mainly in two French regions: Île-de-France and Provence-Alpes-Côte d’Azur. It highlights the motivations and inner workings of the relationship between project leaders and backers. It identifies, from verbatim, typical situations that make it possible to understand the differences observed between the supported companies and to recognize the strengths and possible weaknesses of this system of financing and support. The study aims to highlight the contribution of a particular type of capital contributor, namely business angels, in securing the life cycle of companies, and to show how their commitment to the financing and support of a company reduces the risk of failure.

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