ABSTRACT
We are studying the impact of informal venture capital investors (also called business angel investors) on the creation of entrepreneurial firms in emerging economies of Southeast Asia. There has been a lack of research focusing on the impact that business angels have on the development of early-stage, high-growth potential firms in emerging economies. We have determined that business angels (BAs) in Thailand and the Philippines support the funding and development of early-stage, high-growth potential entrepreneurial ventures in spite of the lack of fully developed legal and financial institutions needed to support both formal and informal venture capital investing in emerging economies (Scheela and Jittrapanun 2012; Scheela and Isidro 2009). Our research question is: How do business angels effectively invest in and help develop entrepreneurial firms in emerging economies lacking the fully developed institutions necessary to support private equity investors?
