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Patient capital in entrepreneurial finance: A reassessment of the role of business angel investors

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    Rights statement: produced PDF of an article accepted for publication in Socio-Economic Review following peer review. The version of record Richard T. Harrison, Tiago Botelho, Colin M Mason; Patient capital in entrepreneurial finance: a reassessment of the role of business angel investors. Socioecon Rev 2016; 14 (4): 669-689. doi: 10.1093/ser/mww024 is available online at: https://academic.oup.com/ser/article-lookup/doi/10.1093/ser/mww024

    Accepted author manuscript, 713 KB, PDF document

Original languageEnglish
JournalSocio-Economic Review
Issue number4
Publication statusPublished - 23 Dec 2016


The debate on patient capital, particularly in the varieties of capitalism literature, concentrates on institutions and public markets. In this paper, we take an entrepreneurial finance perspective to examine the investment attitudes and behaviours of business angels. These represent the biggest source of external risk capital for new and young growing companies and therefore play a critical role in entrepreneurial ecosystems. Drawing on both a detailed review of previous research on business angel investment time horizons, investor engagement and exit behaviour and new survey evidence we conclude that only a minority of angels could be defined as being exit-centric investors. It can be concluded that the majority of angels are patient investors in terms of investment intentions, engagement and exit behaviour, largely by default rather than intent. Most do not consider the exit at the investment appraisal stage nor the need for patience.

    Research areas

  • voice, exits, business angels, varieties of capitalism, patient capital, corporate finance

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