Potentiality and Actuality: Characteristics and Linkage of Entrepreneurs and Angel Investors in Japan

Author Name NAKAMURA Hiroki (Chuo University) / HONJO Yuji (Faculty Fellow, RIETI) / IKEUCHI Kenta (Fellow, RIETI)
Creation Date/NO. October 2019 19-E-089
Research Project Creation and Development of High-tech Startups
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Certain individuals with experience in entrepreneurial activity tend to become angel investors as they understand the challenges encountered by founders in obtaining the funding needed to launch a business. The purpose of this study is to provide a clearer picture of the characteristics and linkages not only between actual entrepreneurs and angel investors, but also among actual and potential entrepreneurs and angel investors in Japan. This paper is based on the results of an internet survey of Japan conducted by RIETI which examined whether individuals have experience in starting a business and angel investing, as well as whether they are interested in starting a business or angel investing. The individuals are categorized into types of entrepreneurs and angel investors. According to the analysis, the number of entrepreneurs and angel investors is quite small across Japan, however we have established that there is a positive relationship in particular regions of Japan between potential entrepreneurs, angel investors, and potential angel investors. These findings can help vitalize entrepreneurial ecosystems where entrepreneurs are linked with angel investors.