PT - JOURNAL ARTICLE AU - Franz H. Heukamp AU - Heinrich V Liechtenstein AU - Nick Walkeling TI - Do Business Angels Alter the Risk-Return Equation in Early Stage Investments? AID - 10.3905/jpe.2007.686431 DP - 2007 May 31 TA - The Journal of Private Equity PG - 67--86 VI - 10 IP - 3 4099 - https://pm-research.com/content/10/3/67.short 4100 - https://pm-research.com/content/10/3/67.full AB - Venture capitalists in the German-speaking countries do not value the contribution of business angels in co-invested deals. Business angels do not reduce the risk perceived by venture capitalists in early stage deals even if the business angels have what venture capitalists regard as an ideal profile. Venture capitalists also refute that deals with business angels typically generate higher internal rates of return than deals without business angels. The results of this study can be particularly important for the delicate transition process in the venture financing from business angels to venture capitalists.TOPICS: Private equity, developed, quantitative methods, portfolio construction