What influences equity investors’ decision-making in entrepreneurial finance: a systematic literature review 1983–2022

Knowledge on equity investors’ decision-making is often dispersed across disciplines. We synthesise existing knowledge and provide a comprehensive review of criteria guiding investments in entrepreneurial ventures. A systematic review covering 153 papers published between 1983 and 2022 within 16 research disciplines reveals that investors are highly heterogeneous regarding their decision criteria. Venture capital, business angels, and equity crowdfunders share similarities regarding expected financial rewards. In contrast, BAs and ECFs exhibit different priorities towards ownership level and capital requested. Post-investment concerns such as team coachability are only important to BA and VCs. We conclude by synthesising the eight decision criteria factors used by equity investors and provide a structured framework designed to inspire and guide scholars in their future investigations.