The Black Box of the Business Angel Financing Phase: a Comparison of France and Quebec

This article analyzes the behavior of business angels (BAs) according to their investment choices. Known for their role in financing young, innovative SMEs, BAs fill the financing gap in the entrepreneurial ecosystem, particularly in the seed phase. They are hands-on players and offer their skills, expertise, and personal networks to the SMEs in which they invest. They look for high-potential companies, but their behavior depends on the perceived characteristics of the entrepreneurs behind the projects. This article is based on a simultaneously conducted quantitative survey of French and Quebec BAs. We use data from both France and Quebec to gain a better understanding of this phenomenon and to compare the two national contexts.