Business Angels Environment in the Czech Republic and the USA – Case Study


  • Hana Bortlova


Business Angel, Venture Capital, Investing, start-up, seed.


Purpose of the article: Mapping and comparing the investors’ environment in the USA and in the Czech Republic. To focus on characteristics of Business Angels in both markets, the Czech Republic and the USA and highlight the main differences. Methodology/methods: The used research methods are adjusted to the aim of the article. A case study was used as a method of this paper, in order to describe the investors and find out their similarities and dissimilarities. The research was conducted with 50 investors (41 investors from the USA and 9 investors from the CR). In order to provide the triangulation, the author chose three methods of data collection. More specifically, questionnaire, archival data (data on the internet) and interview. The same investors took part in questionnaire as well as in interview. Scientific aim: The aim of this paper is to map the investors’ characteristics in the Czech Republic and in the USA. Findings: Based on outcomes of used methods, the following facts were found out. Business Angels (BA) in the USA tends to be older, with more experience and higher education than BA in the CR. Investing is considered as their full-time job and based on that fact their portfolio is wider. In the USA, the investors have approximately 8 companies in their portfolio, while in the CR only 2. Source of motivation for the US investors is knowledge transfer to young entrepreneurs (for almost 90% of investors). Conclusions: In the CR, there is lack of collaboration among BA, which leads to less investments. The solution for improving the situation might be perceived in establishing the syndicates of BA. Moreover, it is necessary to present good quality projects to BA, consequently the young entrepreneurs need more initiatives and opportunities to gain the required knowledge and practice. However, the author suggest that the deeper research with more respondents should be done in order to provide validate data which presents the whole field.