ANGEL FINANCING IN EARLY STAGES OF COMPANY DEVELOPMENT

Abstract

Capital is like spirit of businesses. No businesses can sustain its development without having sufficient capital. The type and source of funding available for any business majorly depends on stage of company development. Because the companies in early stages of development have high risks and lack of sufficient collateral, traditional financing sources are not an option for these kinds of companies. Today angel financing together with venture capital is one of the outstanding instruments which provide capital that the entrepreneurship and companies in the early stage of development need in the financial markets. This paper examines the emergence and evolution of angel financing in the world and evaluates the current situation of angel financing in Turkey

Keywords

• Entrepreneurship, Venture Capital, Angel Financing.

References

1. Arslan, Ali (2013), Angel Investing and Governmental Support, 5 Startup
2. Turkey, Antalya, Turkey, between 15th-17th February 2013. th
3. Center for Venture Research (CVR) (2002-2012), CVR Analysis Reports (2001- ), http://wsbe.unh.edu/cvr-analysis-reports, [Accessed 12.02.2013]
4. Centre for Strategy and Evaluation Services (2012), Evaluation of EU Member
5. States’ Business Angel Markets and Policies Final Report, http://ec.europa.eu/enterprise/dg/files/ba-rep_en.pdf, [Accessed 10.01.2013]
6. European Commission (2013), Access to Finance: Business Angels, http://ec.europa.eu/enterprise/policies/finance/data/enterprise-finance- index/access-to-finance-indicators/business-angels/index_en.htm, Accessed 15.02.2013]
7. Harrison, Richard T. and Mason, Colin M., (2010), Annual Report on the Business Angel Market in the United Kingdom: 2008/09, https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/322
8. /10-994-annual-report-business-angel-market-2008-2009.pdf, Accessed 13.01.2013]

9. Hill, Brian E. and Power, Dee (2002), Attracting Capital from Angels: How Their
10. Money – and Their Experience- Can Help You Build a Successful Company, NewYork: Wiley&Sons. Kerr, William R., Lerner, Josh, and Schoar, Antoinette (2011), The Consequences of Entrepreneurial Finance: Evidence from Angel Financings, http://www.mit.edu/~aschoar/KLS-Angels-June2011.pdf , [Accessed 7.01.2013]
11. OECD (2011a), Financing High-Growth Firms: The Role of Angel Investors, http://dx.doi.org/10.1787/9789264118782-en, [Accessed 05.01.2013]
12. OECD (2011b), OECD Science, Technology and Industry Scoreboard 2011, http://dx.doi.org/10.1787/sti_scoreboard-2011-en, [Accessed 5.01.2013]
13. Preston, Susan L. (2007), Angel Financing for Entrepreneurs: Early Stage
14. Funding for Long Term Success, San Francisco: Jossey Bass. Ramadani, Veland (2009), “Business Angels: Who They Really Are”, Strategic
15. Change: Briefings on Entrepreneurial Finance, Vol. 18, No.7-8, pp. 249-258.