What is it about?
This article looks at how the role of business angels (individuals who invest their own money in early-stage companies) has changed over time. Instead of working mostly alone, many business angels now operate in organized groups that are more professional and structured. The study focuses on how business angels feel about their own personal and career growth from investing. In particular, it examines whether angels who believe they are learning, developing skills, and growing professionally feel more satisfied with being an investor — and whether that satisfaction makes them more likely to keep investing in new businesses. To explore this, the authors collected survey data from 336 business angels across seven European countries. They used a statistical method (structural equation modeling) to test relationships between: • Perceived personal and career development • Job satisfaction as a business angel • Intention to continue investing The findings show that: • Feeling that they are personally developing is a key reason why people continue being business angels • Personal development matters more than just contributing to innovation or helping startups • When angels perceive strong career development, they are more satisfied and more likely to reinvest In short, the paper argues that business angels are motivated not only by financial returns but also by learning, growth, and professional fulfillment.
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Why is it important?
This research is important for several reasons: a) It shifts how we understand investor motivation Traditionally, business angels are seen mainly as financially driven investors. This study shows that personal development — such as gaining experience, building networks, and learning new skills — plays a major role in keeping angels active in the market. This broadens the understanding of why people invest in startups. b) It helps strengthen the startup ecosystem Business angels are crucial for early-stage companies, often providing: Funding; Mentorship; Strategic advice. If angels feel satisfied and continue investing, more startups can survive and grow. By identifying what keeps angels engaged (career growth and satisfaction), the study helps: Angel networks improve their programs; Policymakers design better support structures; and Entrepreneurs understand how to build better relationships with investors
Perspectives
From a personal standpoint, this manuscript is valuable because it humanizes business angels. Rather than portraying them as purely rational financial actors, it recognizes that angels are people who seek: Learning; Meaningful engagement; Personal growth; and Satisfaction from contributing to entrepreneurship. This perspective reflects real-world investing behavior. Many angels enjoy mentoring founders, expanding their networks, and staying involved in innovative projects. The study captures this lived experience and shows that emotional and developmental rewards are just as important as financial ones. Additionally, the manuscript has practical relevance. It does not just present theory — it offers guidelines for: Angel group managers (to design better support systems); Entrepreneurs (to engage angels beyond money); and Gatekeepers and policymakers (to build healthier ecosystems). Personally, I find the focus on career development particularly insightful. Viewing angel investing as a career journey helps explain why some investors remain active for decades while others exit early. It also suggests that improving learning opportunities and satisfaction could significantly strengthen entrepreneurial finance in Europe and beyond.
Antonio Carrizo Moreira
Universidade Aberta
Read the Original
This page is a summary of: Challenges of business angels: does career matter?, Baltic Journal of Management, June 2024, Emerald,
DOI: 10.1108/bjm-08-2023-0330.
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