The nature and extent of complementarities between the informal and formal venture capital markets has been the subject of limited research. This paper explores systematically the nature and extent of complementarities between the formal and informal venture capital markets in the UK, and identifies the opportunities for additional collaboration. Evidence is presented from surveys of business angels and venture capital fund managers for four types of complementarities: co-investing in deals; sequential investing in ventures; business angels as investors in venture capital funds; and deal referring.
No takes yet. Share an insight, caveat, or question.
Harrison et al. (2000) studied this question.