When debt drives growth: The role of business angels and crowd-investors in entrepreneurial ventures

Vincenzo Capizzi, Annalisa Croce, Francesca Tenca

Abstract

• Investigates the moderating effect of BAs vs. Crowd-investors on debt productivity. • BA-backed ventures take on less debt but use it more efficiently for growth. • Crowd-investment leads to higher debt accumulation but lower debt productivity. • BAs’ "smart money" effect is driven by active monitoring and focused portfolios. • Contributes to the debate on investor heterogeneity in entrepreneurial ecosystems.