This chapter examines the investment activity of business angels in Finland. The first section reviews the size of the investment portfolios of the investors in the sample. Subsequent sections examine the characteristics of their investments in terms of the following: amount invested, stage of business development, industry and location. The chapter concludes by considering the form that investments take, exit horizon and size of shareholding.
KeywordsVenture Capital Investment Portfolio Investment Activity Venture Capital Fund Convertible Bond
Unable to display preview. Download preview PDF.
Notes to Chapter 5
- 1.Summer 1994.Google Scholar
- 2.2l Exchange rates for the Finnish markka at the time of writing (September 1997) was as follows: £1 = FM 8.6; $1 = FM 5.4; ECU 1 = FM 5.85.Google Scholar
- 3.Investors who invest as part of an informal investment syndicate may be able to make a larger number of investments because the time demands involved in the appraisal and monitoring of investments is shared between syndicate members. Investors who adopt a passive approach to their investments are also in a position to make more investments because they will have limited involvement in the companies that comprise their investment portfolio.Google Scholar
- 4.Defined as investments in businesses in the following sectors: other electronics, biotechnology, information technology, pharmaceuticals/health, energy, telecommunications.Google Scholar
- 5.This compares with 35% of investments by professional venture capital funds in technology-based sectors to the end of 1996 (Borg, 1997).Google Scholar
- 6.This contrast between business angels and venture capital funds in the use of different investment instruments is linked to differences in the stage of business development of their investments. The use of convertibles is more common in larger and later stage/MBO investments where more sophisticated deal structures are required.Google Scholar