The Interplay between Angel Finance and Other Sources of Funding for Entrepreneurial Companies

In the last two decades, the entrepreneurial finance landscape has undergone a profound transformation, driven by the emergence of new players and funding sources, along with the transformation of existing investors. Amid this dynamic ecosystem, business angels have emerged as pivotal investors, playing a crucial role in fostering innovation and local economic development. This thesis delves into the complex interactions between business angels and some of the main funding sources within today's entrepreneurial ecosystem, such as bank debt, crowdfunding, and venture capital. Despite the significance of these interactions, the dynamics among different finance providers within the entrepreneurial landscape have yet to be fully investigated. The empirical analyses reveal that the financing paths followed by start-ups and young entrepreneurial firms are strongly influenced by the presence of a business angel within the firm’s ownership base. Consequently, the findings provide evidence on the existence of a complementary relationship between business angels and other actors shaping the entrepreneurial finance ecosystem.