Impact of business angel financing on entrepreneurial success: a systematic review

Abstract

Young enterprises have significant financing needs, especially in the start-up stage when bank financing is difficult to access due to information asymmetry and lack of guarantees. This situation has led to the emergence of various alternative financing methods such as crowdfunding, venture capital, incubators, gas pedals, business angels, etc.

In this article, we focus on financing by Business Angels. These actors are now a key element in the financing of the seed phase of new companies. Research on this type of financing has focused on the pre-investment phase. However, accessing financial resources is not, in itself, an ultimate end, but the question of making the entrepreneurial project a success is the most important. Therefore, the objective of this work is to conduct a systematic review examining the consequences of business angel financing (post-investment phase).

 The impact of this mode of financing for the success of the financed companies is not well explored in the literature but is beginning to gain interest in recent years. Using the Prisma Statement method, we analyzed in detail all the relevant scientific publications answering our research question. The results show a positive trend in the impact of business angel financing on the success of the financed company. This success is expressed and measured in different ways that often correspond to the vision and the specific context of each researcher. However, we did not find any publications related to the African or Arab context, which requires further exploration in this sense.

JEL Classification : G23 ; M13 ; L25 

Paper type : Theoretical Research