The supply of entrepreneurial finance in Europe is constrained by the geographical fragmentation of its capital market. The need to facilitate more cross-border investing by business angelsthe main source of early stage financeis recognized. A study of business angels on the island of Ireland identifies three constraints on cross-border investing:(1) lack of information on cross-border investment opportunities; (2) the preference of angels to invest locally; and (3) tax incentives that are only available for investments in the angel's own country. Increasing cross-border investment requires mechanisms that build relationships between business angels in different countries. KEYWORDS entrepreneurial finance; business angels; investment decision-making; cross-border investing; tax incentives; angel groups JEL F21, F36, L26, L53 HISTORY
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