The purpose of this paper is to investigate how entrepreneurs market their business opportunities towards business angels in the investment process. This is achieved by introducing the business model canvas as a mitigating framework to help entrepreneurs in communicating and structuring the information desired by business angels.
This paper mobilises a case study approach by following a series of investment processes and investment meetings between entrepreneurs and business angels through 27 semi-structured interviews as well as participant observation and qualitative participant feedback from 13 investment processes.
The findings illustrate how introducing a framework like the business model canvas helps alleviate the informational and communication challenges between entrepreneurs and business angels. However, some problems occurred when the entrepreneurs and the business angels did not fully agree on the value proposition of the investment opportunity.
The findings show that entrepreneurs who market their business cases to investors obtain better feedback and a higher chance of funding using the business model canvas. Implications of this paper also relate to the preparation of the entrepreneurs and that matchmakers between entrepreneurs and investors can use the business model canvas to facilitate such processes.
This paper contributes to both the theory of the investment process as well as the application of the business model canvas.
