The investment criteria used by angel investors in brazil: an analysis of their priorities
Uma Análise sobre suas Priorizações
DOI:
https://doi.org/10.21574/remipe.v4i1.53Keywords:
Angel investor, venture capital, startup, decision making criteria, informal investorAbstract
Startups generally need financing to grow and these new ventures often turn to angel investors as a capital option. Angel investors are individuals with great availability of financial resources who decide to invest in risky business often bringing not only capital but also knowledge and experience. The objective of this study is to better understand the angel investment decision making process in startups, identifying and analyzing the investment criteria prioritized by angel investors in their investments in startups. The main research environment of this work was Gávea Angels, the oldest association of angels in Brazil, and secondarily, the investors of the network of contacts of the researchers. In line with most of the international studies on the subject, the results showed that despite the importance of the criteria related to the market, product and financial data, the criteria prioritized were those related to the entrepreneur and his management team, as follows: (1) reliability / honesty of the entrepreneur; (2) enthusiasm / commitment of the entrepreneur; (3) management team; (4) domain expertise of the entrepreneur. The criteria 'resilience' and 'passion of the team' were the most important attributes in the analysis of the 'management team'.
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