Patterns of Angel Investors’ Support for Startups: Examining the Non-financial Dimension

Abstract

This study aims to analyze the patterns of non-financial support provided by angel investors to startups and to identify the individual factors that explain variations in the nature and level of such support, in light of the growing interest in the cognitive and advisory role of angel investors as a key contributor to startup success during the early stages, drawing on the Resource-Based Theory (RBT) as an interpretive theoretical framework guiding the analysis. The study adopts a descriptive–analytical approach based on a systematic review and thematic analysis of the relevant literature to explore forms of non-financial support and to identify the individual factors of angel investors that shape this support.
The findings indicate that the value of non-financial support emerges from a structurally integrated interaction between investors’ professional knowledge, psychological and behavioral characteristics, and personal traits, which explains the variation in both the nature and level of support provided to startups. The review also reveals the limited number of studies that address this interaction within an integrated analytical framework, highlighting the need for further research to examine the non-financial role of angel investors in a more comprehensive and in-depth manner. Accordingly, this study proposes an interpretive framework that contributes to a clearer understanding of the nature of this role and advances knowledge regarding the non-financial mechanisms through which angel investors contribute to supporting startups. These mechanisms include knowledge and experience transfer, managerial and mentoring support, and facilitation of access to professional networks and relationships, in addition to clarifying how professional, psychological, behavioral, and personal factors interact to explain variations in non-financial support.