Business Angel Investment Decisions-Making Criteria Based on The Timmons Model of Entrepreneurial Process of New Venture Creation: An Exploratory Study in Saudi Arabia

Abstract

Abstract

Start-ups have attracted the attention of entrepreneurs, investors and academic scholar in recent years. This paper explores the business angel investment decision-making criteria that are affected by the Timmons model of the entrepreneurial process for creating a new venture. This study fills a gap in the literature due to a lack of empirical evidence from emerging markets that literature not explored. Relatively few studies have explored the impact of adoption of the entrepreneurial process models on the BAs’ investing decision-making criteria. Therefore, this study adopts an interpretivism philosophy and an abductive approach. Also, it is a qualitative research by analysis of cases from a TV show. The data is collected from The Shark Tank episodes and coded using thematic analysis by NVivo software. The main findings obtained from the analysis of selected case indicate that business opportunity aspects were the most dominant investment decision criteria in pitch meetings among angel investors and entrepreneurs. Therefore, adopting balance in the entrepreneurial process for establishing a new venture involved securing capital from BA investors as a financial source for the future. The nature of the Saudi Arabi market shows that angel investors tend to invest in the most innovative investment opportunities that develop the industries that are aligned with Saudi Arabia's direction to realise the country's future vision by 2030. In conclusion, this study offers many beneficial practical implications for both entrepreneurs and angel investors.