Abstract:

Business angels (BAs) are an important source of financing for start-up companies, thus many countries implement different initiatives to support BAs. However, in order to obtain accurate data on the level of BA activity it is necessary to develop tools for measuring it. The existing literature does not offer any methodology for comparative assessment of BA activity based on the data on the visible BA market and other available information.

Therefore, we have developed the methodology for comparative assessment of BA activity. Based on this methodology, we have also developed a new composite index of BA activity. We have also performed an assessment of BA activity in Central and Eastern European (CEE) countries. The results of our research have demonstrated very high heterogeneity in the scope of activity among BAs across CEE countries. They have also empirically attested that such indices as GDP, GDP per capita and the total adult population are not the main factors that influence BA activity in CEE countries.