Follow-on Investing Definition Academic Research on Follow-on Investing Returns to angel investors in groups, Wiltbank, R., & Boeker, W. (2007). This study is based on the largest data set of accredited angel investors collected to date, with information on exits from 539 angels. The paper shows that most of these investors have experienced over a thousand exits from ventures, which the highest number occuring in 2004. Using this data, the paper shows important information regarding investment outcomes for angel investors connected to angel organizations. Prediction and control under uncertainty: Outcomes in angelinvesting, Wiltbank, R., Read, S., Dew, N., & Sarasvathy, S. D. (2009). Journal of Business Venturing,24(2), 116-133. This paper shows the role of venture investing in entrepreneurship with regards to the importance of early investors. This paper empirically investigates angel investors' differential use of predictive versus non-predictive control strategies, using data from 121 angel investors in over 1038. The paper aims to show that show that angels who emphasize prediction make significantly larger venture investments, with the reverse also true. How does initial public financing influence private incentives forfollow-oninvestment in early-stage technologies?, Toole, A. A., & Turvey, C. (2009). The Journal of Technology Transfer,34(1), 43-58. This study uses a two-stage net present value model to identify four effects from initial public investment on the private decision for follow-on investment, with emphasis placed on external investors. The analysis uses a sample of non-venture backed firms entering the SBIR program to examine how reduced risk, the number of SBIR awards, and size of initial public investment influence the likelihood of follow-on venture capital investment. Different conclusions are drawn on firms achieving Phase I, Phase II, and Phase III. Buy In-Follow OnStrategies for Profit, Weigand, R. E. (1991). MIT Sloan Management Review,32(3), 29. Follow-onofferings, Harper, J. T., Johnston, J., & Madura, J. (2004).Journal of banking & finance,28(1), 251-264. This paper determines how follow-on offerings alter firm value above and beyond the typical lockup effects, and whether the effects are conditioned by firm-specific variables. Research in the paper finds that follow-on offerings elicit an average market response of 3.21% over a three-day period surrounding the filing date. The importance of angelinvestingin financing the growth of entrepreneurial ventures, Shane, S. (2012). The Quarterly Journal of Finance,2(02), 1250009. This paper shows the importance of investigating angel investors role in financing private businesses in the US. This report seeks to provide an accurate understanding of the role of angel investing in the entrepreneurial finance system. It defines angel investing and reviews the current state of understanding of the phenomenon. This paper aims to explain this concept by use of surveys, analysis, and questionnaires. Follow-onfinancing of venture capital backed companies: The choice between debt, equity, existing and new investors, Baeyens, K., & Manigart, S. (2006).WP 2006,5. This paper studies the financing strategies of 191 start-ups after they have received venture capital (VC) and thereby contribute to the staging literature. The paper shows that backed start-ups have raised financing on 345 occasions over a five-year period after the initial VC investment. The paper shows that bank debt is the most important source of funding for young and growthoriented companies, supporting the view that VC investors have a certifying role in their portfolio companies. Do institutions matter for business angelinvestingin emerging Asian markets?, Scheela, W., & Jittrapanun, T. (2012). Venture Capital,14(4), 289-308. This literature reports on business angel (BA) investing in the emerging Asian economy of Thailand. The paper answers the question of how BAs can survive in an emerging economy, which lacks the fully developed institutions that are necessary to support formal and informal venture capital investing. In this study, the authors interviewed 20 Thai Chinese BA investors in 2006 and 2007, and studied their investment strategies. Effects of relational capital and commitment on venture capitalists' perception of portfolio company performance, De Clercq, D., & Sapienza, H. J. (2006).Journal of Business Venturing,21(3), 326-347. This paper examines how relational capital and commitment affect a venture capital firm's (i.e., VCFs) perception of the performance of its portfolio companies (i.e., PFCs). It also examines how perceived performance is affected by the social nature of the relationship between the VCF and PFC. The study's hypotheses are tested by applying quantitative analyses to survey data collected from 298 U.S.-based venture capital firms. Returns on investments in equity crowdfunding, Signori, A., & Vismara, S. (2016). This paper quantifies for the first time the return on investments in equity crowdfunding. Using an augmented dataset with combined information from Crowdcube, Crunchbase and the Companies House, it studies the population of 212 successfully funded initial equity offerings on UK crowdfunding platform Crowdcube from inception (2011) to 2015. The paper aims to show the amoutnof companies that failed and the reasons behind their failures. Understanding AngelInvestingin IndiaAn Exploratory Study based on Publicly Available Data, Sabarinathan, G. (2014). Unpublished working paper no. 448, Indian Institute of Management, Bangalore. This paper attempts to improve the current understanding of informal equity investing in three ways. First, it endeavours to map out the investment activity that has been undertaken by a variety of angels, including some of the more prominent angel networks in India, and outline their approach to investing. Second, it attempts to gather investment level data to draw a profile of their investment focus. Third, it profiles the kinds of investors who are active through the various angel networks.