Venture Capital, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review
By Johannes Wallmeroth, Emlyon business school, France | Peter Wirtz, Université de Lyon, France, peter.wirtz.fcs@gmail.com | Alexander Peter Groh, Emlyon business school, France, groh@em-lyon.com
Abstract
Venture capital, angel financing, and crowdfunding have evolved and matured in the entrepreneurial finance market. These market developments have also been accompanied by a growing body of research. In this monograph, we provide an overview of a vast body of literature in the field of entrepreneurial equity finance, presenting the current state of research and succinctly identifying its subcategories. We also provide insight into major research trends and research gaps and examine the growing research field of cognition in entrepreneurial equity finance. Our review is structured using a theoretical framework that aims to link venture capital, angels, and crowdfunding whilst considering the significant differences exhibited between each investment stage.
Venture Capital, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review
Entrepreneurial finance is defined as a topic that covers several sources of capital, such as angel investors, venture capital, private equity, hedge funds, microfinance, project finance, and more. This monograph focuses on three of these principal components – institutional financing (in the shape of formal venture capital), angel financing, and crowdfunding – in order to identify and analyze the academic literature in entrepreneurial equity finance. Venture Capital, Angel Financing, and Crowdfunding of Entrepreneurial Ventures: A Literature Review provides a connected overview of the academic literature. The authors develop a theoretical framework that not only provides insight into the different sources of entrepreneurial equity finance but also guides the volume’s structure. The cornerstones are presented in an interconnected style rather than individually. This offers the benefit of analyzing the literature that investigates the interplay between these market forces rather than simply investigating each financing technique’s individual contribution, therefore providing a sense of the overall market dynamics.
