Skip to Main Content
HBS Home
  • About
  • Academic Programs
  • Alumni
  • Faculty & Research
  • Baker Library
  • Giving
  • Harvard Business Review
  • Initiatives
  • News
  • Recruit
  • Map / Directions
Faculty & Research
  • Faculty
  • Research
  • Featured Topics
  • Academic Units
  • …→
  • Harvard Business School→
  • Faculty & Research→
Publications
Publications
  • January 2014
  • Article
  • Review of Financial Studies

The Consequences of Entrepreneurial Finance: Evidence from Angel Financings

By: William R. Kerr, Josh Lerner and Antoinette Schoar
  • Format:Print
ShareBar

Abstract

This paper documents that ventures that are funded by two successful angel groups experience superior outcomes to rejected ventures: they have improved survival, exits, employment, patenting, web traffic, and financing. We use strong discontinuities in angel funding behavior over small changes in their collective interest levels to implement a regression discontinuity approach. We confirm the positive effects for venture operations, with qualitative support for a higher likelihood of successful exits. On the other hand, there is no difference in access to additional financing around the discontinuity. This might suggest that financing is not a central input of angel groups.

Keywords

Business Ventures; Financing and Loans; Interests; Employment; Patents; Internet and the Web; Operations; Entrepreneurship; Business Exit or Shutdown

Citation

Kerr, William R., Josh Lerner, and Antoinette Schoar. "The Consequences of Entrepreneurial Finance: Evidence from Angel Financings." Review of Financial Studies 27, no. 1 (January 2014): 20–55.
  • Read Now

About The Authors

William R. Kerr

Entrepreneurial Management
→More Publications

Josh Lerner

Entrepreneurial Management
→More Publications

More from the Authors

    • July 2022
    • Faculty Research

    Yinglan Tan: Scaling a Venture Capital Firm in Southeast Asia

    By: Josh Lerner and Richard Zhu
    • June 2022 (Revised June 2022)
    • Faculty Research

    Note on Digital Commerce and Delivery: Grocery and Food Value Chains

    By: William R. Kerr, Daniel O'Connor, Paige Boehmcke and Will Ensor
    • June 2022
    • Faculty Research

    Can Goodr Fight Food Insecurity at Scale?

    By: Daniel Isenberg and William R. Kerr
More from the Authors
  • Yinglan Tan: Scaling a Venture Capital Firm in Southeast Asia By: Josh Lerner and Richard Zhu
  • Note on Digital Commerce and Delivery: Grocery and Food Value Chains By: William R. Kerr, Daniel O'Connor, Paige Boehmcke and Will Ensor
  • Can Goodr Fight Food Insecurity at Scale? By: Daniel Isenberg and William R. Kerr
ǁ
Campus Map
Harvard Business School
Soldiers Field
Boston, MA 02163
→Map & Directions
→More Contact Information
  • Make a Gift
  • Site Map
  • Jobs
  • Harvard University
  • Trademarks
  • Policies
  • Accessibility
  • Digital Accessibility
Copyright © President & Fellows of Harvard College