Bet on the jockey

While analysing the investment potential of start-ups, angel investors base their decision on three criteria — quality of the entrepreneurial team, market potential and the product on offer. But there is disagreement on whether investors should bet on an A team with a B idea or a B team with an A idea. Researchers Luisa Alemanyand Jaume Villanueva discovered that only the management team had a significant impact on the sales performance of start-ups.

Title: Early age investor’s criteria and New Venture Financial Performance: Are they related?

Source: Social Science Research Network