Entrepreneurship and the evolution of angel financial networks

The success of a new venture often depends on an entrepreneur's ability to establish a network of supportive relationships. The mobilization of financial resources is a particularly important entrepreneurial activity. Informal or 'angel' investors represent a significant source of venture capital. However, the challenges of organizing and managing a supportive angel network are considerable. This paper reports the findings of a longitudinal study of the development and evolution of an angel financial network within a newly created firm and further refines how theories of social capital and structural holes might be usefully applied to an entrepreneurial context. Suggestions for further research are presented in the form of propositions.