Zoomvesting: angel investors' perception of subjective cues in online pitching

Purpose The COVID-19 pandemic transformed angel investment meetings from in-person to online. The purpose of this paper is to explore whether this move affected angel investors' perception of subjective behavioral cues in pitch sessions within a large Brazilian angel group. Design/methodology/approach This study followed an exploratory approach using a triangulation process that combined observation, documents and interviews. Data collected by observation, document studies, and interviews were themed, coded, and organized during the research. Findings The move from in-person to online pitches did not seem to affect levels of trustworthiness or arrogance as angels assessed more message content during Q&A sessions. Body movement, gestures and “eye gaze” (i.e. the look on a presenter’s face) played a central role in passion assessment during in-person meetings. Body language was highly limited during online sessions and tone of voice became the main source of passion assessment. Research limitations/implications The findings of this study suggest that pitches at online meetings affect angel investors' perception of founders' subjective cues, particularly cues pertaining to passion. Entrepreneurs should be trained to convey passion with tone of voice and to improve their body language in the context of webcam use. The interviews with volunteer sampling were subject to volunteer bias. Additionally, the findings may be affected by cultural context. Practical implications A practical contribution of this study is to highlight the need for entrepreneurs to be trained for online pitches. In an online setting, body language is limited, but it is still possible to use one’s hands and tone of voice to connect better to investors. Originality/value This study is unique because it captures the transition of angel investment meetings from in-person affairs before the pandemic to online meetings during the pandemic crisis. These unique circumstances provided a real-world laboratory to observe founders' subjective cue effects on angel investment decision-making.

An evaluation of the investment of the delivery industry in America a specific example for DoorDash

We can still see that the delivery industry in American is still growing and has not mature. To analyze it, I use the traditional swot and pestle analysis. These two tools are more accurate when we need to judge low-end products like the delivery industry. Also, I use financial analysis to deal with the data. The conclusion for most investors is not to recommend investing in these companies because the delivery industry is unstable now. DoorDash is a great example to prove. For the decision of whether investing DoorDash or not, I think it depends. Because the market in America is always that big, there has to be someone to occupy the market, but just as I mentioned, the first person to figure out the way to save their operating cost can be the winner, because the gross profit seems cannot change so much in the future, in a food-related industry, the consumer's bargaining power is pretty strong. It may not invest in this industry unless investors are angel investors and willing to take the risk.

A High Tech Start-up’s Journey Towards Funding

<p>1.1 Masters background As part of the “Masters in Advanced Technology Programme” each student had to select a high-tech start-up that they wanted to be involved in throughout the year. Each individual would bring value to the start up through their background and experience. The start-up I selected was an interactive robotic toy called “Auti”. Project champion, Helen’s envisioned goal was for the toy to help children with autism learn positive behaviours. Our team consisted of two main individuals not including the product champion (Please refer to Appendix A to learn more about the team, team dynamics etc.). My individual responsibility in terms of contribution to the team was to establish a strategic business plan, including a growth strategy for the project. Gaining funding is a critical part of any start-up’s growth (Ministry of Economic Development, 2007). Financial planning forces companies to think about their goals. A common goal most companies have is the goal to grow (Ross et al., 2002). 1.2 Objectives The objective of this study was to identify the best suited funding sources, which I could then recommend “Auti” implement in order to help the company become a feasible, sustainable business. In order to make the most appropriate recommendations, I had to become financially literate. A study done in Canada found that weak financial literacy may be one of the biggest reasons start-up businesses do not succeed (Intuit, 2013). 1.3 Research questions My thesis looks to answer three specific questions. Questions one and two are specific to my individual research conducted into the angel investment industry in New Zealand. 1) How do angel investors in New Zealand view the angel investment industry in New Zealand? 2) What do angel investors expect high-tech start-ups to have in place before they would consider investing? Thesis question three is related to the main theory of the thesis. 3) How relevant is the “pecking order capital structure” theory to high-tech start-up companies in New Zealand? 1.4 Contribution This thesis contributes to practice as well as theory. My interviews with angel investors are “practice led”, meaning that the research led to a new understanding about practice (Edmonds et al., 2006). In terms of my own research, a new understanding was formed on angel investment in New Zealand in 2014. Specifically, a common list of things angels throughout New Zealand look for in “high-tech” start-ups, before they would consider investing, was identified. The main theory within this thesis is to do with the “pecking order capital structure”, in relation to high-tech start-ups, therefore contributing to research done around the pecking order theory. 1.5 Thesis layout This thesis is a reflection of the two facets of research that I conducted. The two approaches used were action-based research and in-depth Interviews. Action-based research aims to contribute both to the practical concerns of people in an immediate problematic situation and to further the goals of social science at the same time (Gilmore et al., 1986). Action-based research, as mentioned in this thesis, looks into the process that was taken to find the best suited funding sources for our start-up, “Auti”. An in-depth interview was conducted with angel investors in New Zealand to get a better understanding of angel investment in New Zealand. Specific focus is put on “angel investment” in New Zealand as this is the preferred choice of start-up capital for “Auti”. The thesis begins with a literature evaluation. The first section will evaluate funding source literature that influenced us to select angel investment funding as something we wanted to get a better understanding of. Further angel investment literature will be evaluated, including the gap in literature that my individual research into angel investment fills. Research question three looks to see if our start-up, “Auti”’s capital structure follows the “pecking order capital structure”, therefore there will also be a section within the literature review chapter that will include my main findings on past research, which has been conducted around the world, looking into if high-tech start-ups, such as “Auti”, follow the “pecking order capital structure”. The definition of high-tech firms, also known as new technology based firms, is not clear, its application differs significantly depending on time, space, and authors (Laranja &Fontes, 1998; Fontes & Coombs, 2001). One way it has been defined by Little (1977) is “independent owned business established for not more than twenty-five years and based on the exploitation of an invention or technological innovation implying substantial technological risks”. Following the literature review chapter, my research methodology is described, specifically with regards to my individual research into angel investment in New Zealand, explaining what I did, why, and problems that I faced. The thesis then follows with main findings from my individual qualitative research into the angel investment industry in New Zealand. The thesis conclusion will have six main sections. Sections will cover whether or not my research supports the literature, what my research contributions are, and an implementation section (recommending start-up funding implications for “Auti”). As my individual research looked into the angel investment industry in New Zealand, a majority of the implementation will be specific to what the “Auti” team should do in respect to approaching angel investment in order to have a higher chance of gaining investment. My recommended start-up funding implications will then be compared to the pecking order capital structure to show that it follows that structure. A section will also look into the limitations that my research faced. The last section will be recommendations in terms of further research needed to be conducted in order to support my research conclusions.</p>

A High Tech Start-up’s Journey Towards Funding

<p>1.1 Masters background As part of the “Masters in Advanced Technology Programme” each student had to select a high-tech start-up that they wanted to be involved in throughout the year. Each individual would bring value to the start up through their background and experience. The start-up I selected was an interactive robotic toy called “Auti”. Project champion, Helen’s envisioned goal was for the toy to help children with autism learn positive behaviours. Our team consisted of two main individuals not including the product champion (Please refer to Appendix A to learn more about the team, team dynamics etc.). My individual responsibility in terms of contribution to the team was to establish a strategic business plan, including a growth strategy for the project. Gaining funding is a critical part of any start-up’s growth (Ministry of Economic Development, 2007). Financial planning forces companies to think about their goals. A common goal most companies have is the goal to grow (Ross et al., 2002). 1.2 Objectives The objective of this study was to identify the best suited funding sources, which I could then recommend “Auti” implement in order to help the company become a feasible, sustainable business. In order to make the most appropriate recommendations, I had to become financially literate. A study done in Canada found that weak financial literacy may be one of the biggest reasons start-up businesses do not succeed (Intuit, 2013). 1.3 Research questions My thesis looks to answer three specific questions. Questions one and two are specific to my individual research conducted into the angel investment industry in New Zealand. 1) How do angel investors in New Zealand view the angel investment industry in New Zealand? 2) What do angel investors expect high-tech start-ups to have in place before they would consider investing? Thesis question three is related to the main theory of the thesis. 3) How relevant is the “pecking order capital structure” theory to high-tech start-up companies in New Zealand? 1.4 Contribution This thesis contributes to practice as well as theory. My interviews with angel investors are “practice led”, meaning that the research led to a new understanding about practice (Edmonds et al., 2006). In terms of my own research, a new understanding was formed on angel investment in New Zealand in 2014. Specifically, a common list of things angels throughout New Zealand look for in “high-tech” start-ups, before they would consider investing, was identified. The main theory within this thesis is to do with the “pecking order capital structure”, in relation to high-tech start-ups, therefore contributing to research done around the pecking order theory. 1.5 Thesis layout This thesis is a reflection of the two facets of research that I conducted. The two approaches used were action-based research and in-depth Interviews. Action-based research aims to contribute both to the practical concerns of people in an immediate problematic situation and to further the goals of social science at the same time (Gilmore et al., 1986). Action-based research, as mentioned in this thesis, looks into the process that was taken to find the best suited funding sources for our start-up, “Auti”. An in-depth interview was conducted with angel investors in New Zealand to get a better understanding of angel investment in New Zealand. Specific focus is put on “angel investment” in New Zealand as this is the preferred choice of start-up capital for “Auti”. The thesis begins with a literature evaluation. The first section will evaluate funding source literature that influenced us to select angel investment funding as something we wanted to get a better understanding of. Further angel investment literature will be evaluated, including the gap in literature that my individual research into angel investment fills. Research question three looks to see if our start-up, “Auti”’s capital structure follows the “pecking order capital structure”, therefore there will also be a section within the literature review chapter that will include my main findings on past research, which has been conducted around the world, looking into if high-tech start-ups, such as “Auti”, follow the “pecking order capital structure”. The definition of high-tech firms, also known as new technology based firms, is not clear, its application differs significantly depending on time, space, and authors (Laranja &Fontes, 1998; Fontes & Coombs, 2001). One way it has been defined by Little (1977) is “independent owned business established for not more than twenty-five years and based on the exploitation of an invention or technological innovation implying substantial technological risks”. Following the literature review chapter, my research methodology is described, specifically with regards to my individual research into angel investment in New Zealand, explaining what I did, why, and problems that I faced. The thesis then follows with main findings from my individual qualitative research into the angel investment industry in New Zealand. The thesis conclusion will have six main sections. Sections will cover whether or not my research supports the literature, what my research contributions are, and an implementation section (recommending start-up funding implications for “Auti”). As my individual research looked into the angel investment industry in New Zealand, a majority of the implementation will be specific to what the “Auti” team should do in respect to approaching angel investment in order to have a higher chance of gaining investment. My recommended start-up funding implications will then be compared to the pecking order capital structure to show that it follows that structure. A section will also look into the limitations that my research faced. The last section will be recommendations in terms of further research needed to be conducted in order to support my research conclusions.</p>

What differentiates angel investors in pre-seed versus seed-stage investments? Evidence from India

Purpose Angel investments are increasingly getting specialized. In recent years, start-ups are raising pre-seed funding before seed-stage funding. Investors in pre-seed and seed-stage companies commonly are angel investors. The purpose of this paper is to understand the differences between these two groups of angel investors. Design/methodology/approach Data for this study obtained from angel funding deals from the sources such as Venture Intelligence, VCCEdge, Keiretsu Forum, Dealcurry and The Chennai Angels. A total of 732 angel investments made by 405 investors during 2014–18 were used in the analysis. Non-parametric tests and regression estimations were used to identify the differences between angel investors investing in pre-seed and seed-stage ventures. An index was developed to measure the extent of syndication in angel investments and used as an independent variable in the regression. Findings There are significant differences between angel investors investing in pre-seed and seed-stage ventures. The results show that angels with more industry-specific experience make a higher proportion of investment in seed-stage ventures. Seed-stage ventures attract investors from Tier-1 cities, whereas the pre-seed stage has higher investors from smaller cities. Though the investment size is smaller, the extent of syndication is greater in pre-seed stage investments. Originality/value To differentiate the angel investments between pre-seed and seed-stage funding, this study uses data from Indian start-ups. Further, this study develops a composite syndication index to measure the extent of syndication in angel investments and assesses its impact on an angel investor’s choice of pre-seed stage investments.

Lost in translation: increasing engagement between angel investors and immigrant startups in the Canadian entrepreneurial ecosystem

Immigrant entrepreneurs are an important and growing segment of Canada’s startup scene. They contribute to the Canadian economy and lower unemployment rates by creating job opportunities through their ventures. However, they face a challenge in receiving funding from local investors in the initial stages of their startup. Angel investors are experienced professionals with an extensive network in the entrepreneurial ecosystem who specialize in early stage funding. Increasing engagement between Angels and immigrant entrepreneurs can create greater opportunities for the immigrant community in Canada and help Angels diversify their portfolio. The objective of this research is to adapt the Investment Decision Making Criteria for Angels (IDMCA) to analyze the factors that influence an Angel’s decision making process, and determine whether these factors are moderated by an entrepreneur’s immigrant status. Results from the study have shown that the Passion & Commitment (P&C), Integrity & Trust (I&T), and Open-mind & Adaptability (O&A) are important factors for an Angel’s decision making in respect to immigrant startups, whereas Industry Experience (IE), Track Record (TR), and Technology Knowledge (TK) are not important factors.

Lost in translation: increasing engagement between angel investors and immigrant startups in the Canadian entrepreneurial ecosystem

Immigrant entrepreneurs are an important and growing segment of Canada’s startup scene. They contribute to the Canadian economy and lower unemployment rates by creating job opportunities through their ventures. However, they face a challenge in receiving funding from local investors in the initial stages of their startup. Angel investors are experienced professionals with an extensive network in the entrepreneurial ecosystem who specialize in early stage funding. Increasing engagement between Angels and immigrant entrepreneurs can create greater opportunities for the immigrant community in Canada and help Angels diversify their portfolio. The objective of this research is to adapt the Investment Decision Making Criteria for Angels (IDMCA) to analyze the factors that influence an Angel’s decision making process, and determine whether these factors are moderated by an entrepreneur’s immigrant status. Results from the study have shown that the Passion & Commitment (P&C), Integrity & Trust (I&T), and Open-mind & Adaptability (O&A) are important factors for an Angel’s decision making in respect to immigrant startups, whereas Industry Experience (IE), Track Record (TR), and Technology Knowledge (TK) are not important factors.

The lost generation of entrepreneurs? The impact of COVID-19 on the availability of risk capital in Canada

Purpose Canada has lagged in access to capital for high-potential, growth-oriented new ventures, but has made considerable strides in the past decade. This study aims to examine the evolving state of the market for risk capital in Canada during the COVID-19 pandemic, providing a critical assessment of government policy from the perspective of angel investors and diverse communities of entrepreneurs. Design/methodology/approach A thematic analysis was conducted of seven COVID-19 roundtable discussions hosted by the National Angel Capital Organization that included 51 global and national-level business and political leaders. The analysis extracted the most salient details from the discussions, distilling them into timely and actionable insights for policymakers. Findings The analysis suggests that the government’s economic policy response to the COVID-19 crisis fails to address the sudden liquidity problems faced by new ventures. Entrepreneurs and angel investors have remained resilient, rallied as a community and demonstrated an extraordinary level of trust. Traditionally under-represented communities of entrepreneurs are more affected by the crisis than others. Practical implications The findings and recommendations are of relevance to policymakers interested in post-COVID-19 economic policies to address the unique challenges faced by start-ups and ensure their full contribution to economic recovery. Originality/value The paper presents several policy recommendations and proposes a novel framework to describe the impacts of the pandemic on different categories of start-ups.