Family and Friends Round - Definition
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Friends & Family Round Definition Academic Research on Friends & Family Round Crowdfunding: Geography, social networks, and the timing ofinvestmentdecisions, Agrawal, A., Catalini, C., & Goldfarb, A. (2015). Journal of Economics & Management Strategy,24(2), 253-274. This paper examines a crowdfunding platform that connects artists with funders.The paper shows that local and distant funders exhibit different fundign behaviours depsite the availability of the Internet. The paper shows that local funders (funders with offline social relationships) appear less responsive to information about the cumulative funds raised by an artist. These findings provide a deeper understanding of the abilities and limitations of online markets to facilitate transactions and convey information between buyers and sellers with varying degrees of social connectedness. Angel finance: the other venture capital, Wong, A., Bhatia, M., & Freeman, Z. (2009). Strategic Change: Briefings in Entrepreneurial Finance,18(78), 221-230. This paper explains the term Angel Investor as a high networth individual who typically invests in small, private firms on his or her own account. The study uses a unique dataset of firms financed by angels between 1994 and 2001, to provide insights into angels in funding, monitoring and guiding their investments. .The results of the study indicate that angels have a complementary role to venture capital in the financing of new ventures. Angel investors and the market for angelinvestments, Prowse, S. (1998). Journal of Banking & Finance,22(6-8), 785-792. This paper suggests that the angel market (market for angel investors) is obscure. The paper explores the lack of information about the size of this market, scope, the type of firms that raise angel capital, and the types of individuals that provide it. To solve this problem, the paper provides evidence on the angel market gathered from a field research which has involved interviews with more than a dozen angel investors in the Dallas/Fort Worth area. Patents as signals for startup financing, Conti, A., Thursby, J., & Thursby, M. (2013). The Journal of Industrial Economics,61(3), 592-622. This study examines the role of patents as signals used to reduce information asymmetries in entrepreneurial finance. A theoretical model gives conditions for a unique separating equilibrium in which startup founders file for patents to signal invention quality to investors, as well as appropriating value. The empirical analysis is consistent with the model's predictions using a novel dataset of Israeli startups that received external funding during the period 1994-2011. A conceptualizedinvestmentmodel of crowdfunding, Tomczak, A., & Brem, A. (2013). Venture Capital,15(4), 335-359. This article explores crowdfunding as an alternative investment opportunity and source of capital. The article takes a view on whether crowdfunding is a replacement or an addition to traditional seed capital sources in the early stages of a new venture. Drawing on an in-depth review of current literature on crowdfunding, this article creates an investment model of crowdfunding with various reward models available to investor and investee in mind. It also provides an extensive survey of the environment of crowdfunding based on current literature. Show me the right stuff: Signals for hightech startups, Conti, A., Thursby, M., & Rothaermel, F. T. (2013). Journal of Economics & Management Strategy,22(2), 341-364. This study presents a theoretical model of startup signaling with multiple signals and potential differences in external investor preferences. For a novel sample of technology incubator startups, the study empirically examines the use of patents and founder, friends, and family (FFF) money as such signals, finding that they are jointly endogenous to venture capital and business angel investment in the startups. The siren call of equity crowdfunding, Dorff, M. B. (2013).J. Corp. L.,39, 493. This essay examines the data on angel investing the closest analogue to equity crowdfunding and concludes that the majority of the issuers that sell stock to the middle class over the internet will lose money for investors, with many failing entirely. It also suggests that the strategies that help the best angels profit will not be available to crowdfunders. Financing high technology startups in Belgium: An explorative study, Manigart, S., & Struyf, C. (1997). Small Business Economics,9(2), 125-135. In this paper, results of an explorative study on the financing of 18 high technology Belgian startups are reported. The paper shows that on a counts basis, the most important sources of financing at the startup are the entrepreneurs and the banks, but the sources that provide the largest amounts of funds are the venture capital companies and private investors.The paper also shows that the role of the government, universities and other companies is limited. On the structure of the informal venture capital market in Sweden: developinginvestmentroles, Avdeitchikova, S. (2008).Venture Capital,10(1), 55-85. This paper estimates the size of informal venture capital market in Sweden, and explores the heterogeneity of informal investing behaviour. Based on quantitative data on 278 informal venture capital investors and 422 investments, the paper provides an estimation of the size of the informal venture capital market in Sweden and an analysis of its structure by making a categorization of informal investors' investment roles. Crowdfunding of small entrepreneurial ventures, Schwienbacher, A., & Larralde, B. (2010). This book discusses crowdfunding as an alternative way of financing projects, with a focus on small, entrepreneurial ventures. It provides a description of crowdfunding and discusses existing research on the topic, putting crowdfunding into perspective of entrepreneurial finance and thereby describing factors affecting entrepreneurial preferences for crowdfunding as source of finance. It also elaborate different business models used to raise money from the crowd, in particular with respect to the structure of the crowdfunding process. For clarity purpose, Media No Mad ( a French startup) is used as case study.