The Use of Non-Economic Investment Strategies Amongst Finnish Business Angels: a qualitative study

Abstract

Objectives The main objectives of this study were to explore the non-economic investment strategies used amongst Finnish business angels. Additionally, the study aimed to find which nonpecuniary factors impact the decision-making process of choosing an investment. Finally, the relationship between these nonpecuniary goals and economic return was studied to explore whether investors would be ready to risk economic return in order to fulfil some nonpecuniary goal.

Summary The literature review discusses existing non-economic investment strategies. Qualitative research was conducted through interviews to study the research problem. The findings describe the use of those as well as which other nonpecuniary factors impact the investment decision-making process of Finnish business angels. Finally, a narrative analysis of the interview data revealed information on the topic of risking economic return for nonpecuniary goals.

Conclusions The study shows that non-economic investment strategies are used to different extents amongst Finnish business angels. In addition to the non-economic investment strategies other nonpecuniary factors such as the people behind the business were found to impact the investment decision-making process. Finally, it was found that the investors would rather keep investing and charity separate that try to create impact through their investments. Instead, the participants seemed to avoid damage through their investment strategies and create good through charity.