Business angels environment in the Czech Republic and the USA – case study

Abstract

Purpose of the article Mapping and comparing the investors‘ environment in the USA and in the Czech Republic. To focus on characteristics of Business Angels in both markets, the Czech Republic and the USA. Methodology/methods The used research methods are adjusted to the aim of the article. To make an overview of the situation in the Czech Republic, all available sources regarding investors themselves, and investing into new companies were analyzed. A case study was used as a method of this paper, in order to describe the investors and find out their similarities and dissimilarities. The case study also enabled to find out the features in the frame of the investors‘ spectrum. The research was conducted with 50 investors. In order to provide the triangulation, the author chose three methods of data collection. More specifically, questionnaire, archival data (accelerator documents, data on the internet) and interview. Scientific aim The aim of this paper is to map the investors characteristics in the Czech Republic and the USA. Moreover, to compare both markets in the regard of investors and investing environment. Findings and conclusions Based on outcomes of used methods, the following facts were found out. Business Angels (BA) in the USA tends to be older, with more experience and higher education. Investing is considered as their full-time job and based on that fact their portfolio is wider. Their source of motivation is knowledge transfer to young entrepreneurs (for 90% of investors). In the Czech Republic, there is lack of collaboration among BA, which leads to less investments. The solution might be perceived in establishing the syndicates of BA. Moreover, it is necessary to present good quality projects to BA, consequently the young entrepreneurs need more initiatives and opportunities to gain the required knowledge and practice