Knowledge transfer: Learning linkages between angels and entrepreneurs

The suggestion by previous researchers indicates entrepreneurial firms receiving outside capital funding had higher success rates. The literature continues to imply that information or knowledge beyond financial transactions transpiring between the angel investor and the entrepreneur, during the maturation of their relationship, contributes to the venture's success. Within the context of information asymmetry, exploration of knowledge transfer disclosed three specific areas in which angels assisted the funded entrepreneur: financial development, strategy development, and entrepreneurial discipline. This exploratory qualitative study of six angel and entrepreneur dyads suggests that entrepreneurs, who work with knowledgeable angels, especially angels whose knowledge and experience compliment the entrepreneur's knowledge, gain valuable assistance throughout the relationship, thereby increasing the potential for success of the venture.