The internationalization of business angel networks: do syndicates increase cross-border investment returns?
Journal
Venture Capital
Type
journal article
Date Issued
2023
Author(s)
Wesemann Lekkas Henrik
;
Antretter, Torben
Abstract
This paper investigates the performance effects of cross-border business angel investments. Examin-ing 815 investments on a business angel investment platform, we find an inverted U-shaped relationship between (geographic and cultural) distance and investment returns. We further show that business angels in large syndicates are less sensitive to the costs of both geographic and cultural distance and earn consistently higher returns. Our study contributes to the literature on business angel internationalization and highlights the role of co-investment networks: network resources allow business angels to mitigate transaction costs associated with cross-border investments and improve their investment returns.
Volume
25
Number
4
Start page
487
End page
514