Roger Sørheim and Espen J. Isaksen
Roger Sørheim and Tiago Botelho
Previous studies of business angels have shown that the population is very heterogeneous, with various studies developing typologies to describe different categories of investor. This chapter provides a critical review of previous research on business angel categorisations to highlight the key contributions. The authors note that previous studies have categorised business angels using a wide range of variables, mostly grouping investors according to investors’ characteristics and often derived from data rather than theory. The main contribution of these studies has been to develop a more sophisticated and nuanced view of the definition and behaviour of business angels – which breaks free from an oversimplified stereotypical view of business angels. However, in many cases the categorisations are fragmented, lacking a theoretical anchor, supply-side driven and rather static. The authors conclude that these studies have not significantly influenced policymakers and policies to target different categories of business angel.