My PhD research looks at entrepreneurs’ attitudes to failure in Germany, UK and USA. An article by Jeff Lynn in TechCrunch talks about a UK angel focus on investment levels rather than returns, a total contrast to recent Ron Conway press. In Silicon Valley, returns are more clearly a driver: having fun along the way and making a contribution are more important than tax breaks and financial planning.
The angel investor culture surely has an impact on entrepreneurial attitudes to failure. Perhaps there is an holistic “portfolio theory” at work here – UK angels tend to see investing as a numbers game involving risk mitigation, tax sheltering and hedging the market. Silicon Valley investors may have a broader range of variables beyond the alpha and beta to drive their investments. What about Germany, too? Does the presence of early-stage support from organizations such as the Fraunhofer institutes distort the motiviation for non-family related investing?
Just a thought. I need to come back to this after some interviews.