Community Research and Development Information Service - CORDIS


Informal investors and high-tech entrepreneurship

Funded under: FP5-INNOVATION-SME


The role of informal investors in financing young, innovative-technology enterprises in the European Union is analysed. Comparisons with the USA and Israel are given. This is based on a review of salient literature and interviews with informal investors and entrepreneurs. The characteristics of informal investors are examined. Important players, successes and constraints are identified. Instructive features of informal investor activity are analysed. Key issues that affect transfer of good practices are high-lighted. The potential of incubators in nurturing new, technology-based firms is noted.

Interaction between technology-based entrepreneurs and informal investors can be improved by matchmaker and introduction services, 'business angel' networks, and business plans. The deal should be approached and negotiated in a way that helps both sides to win. Cash flow will improve with quicker subsidies, reduced regulatory burdens, fairer competition, prompter payment, and financial innovations that respond to technological innovation.

Findings from the survey and analysis were discussed at a workshop held in Luxembourg on 30 May 2000, and its Proceedings are incorporated in this report. rt.

Additional information

Authors: No authors provided, DG-Enterprise
Bibliographic Reference: EUR 17030 EN (2001), pp.91. Euro: 16.00
Availability: Available by EUR-OP Sales Agents.
ISBN: ISBN: 92-894-0631-3
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