The pioneering study conducted by The Research Institute of the Finnish Economy (Etla) has taken a giant leap to open up the mystery about the real effects of angel investments, as well as synergies between private and public funding in Finland.

Etla’s new study  Business Angel Investment, Public Innovation Funding and Firm Growth (ETLA Report 97) combines an extensive literature review of business angel investments with an econometric analysis of the impact of angel investments. According to the study, in Finland, business angels invest annually in a few hundred mainly startup firms that operate typically in knowledge-intensive industries.

The data include FiBAN members’ investments in firms both abroad and in Finland and cover the years from 2013 to 2018. The results show that 80% of firms funded by business angels in 2013–2017 operate in the service sector. As many as 41% of target firms provide information and communication technology.