Angel group members' decision process and rejection criteria: A longitudinal analysis

•First longitudinal analysis of angel group members' (AGMs) decision process•We collect, analyze and code each rejection reason, for 636 proposals.•We show differences between the AGMs' process and that of individual angels.•AGMs seem to focus on market risk, similar to venture capitalists.•Inexperienced entrepreneurs do not get financing because of weak proposals.

This paper investigates business angel group members' decision-making from project submission to the final decision. Using a Canadian group's archival data on 636 proposals, we provide a detailed longitudinal analysis of the decision process. The rejection reasons generally refer to market and execution risk; this finding holds for every step of the process for proposals that pass the pre-screen. Angel group members focus more on market and execution risk than agency risk, similar to venture capitalists. Inexperienced entrepreneurs are rejected for market and product reasons. Decision-making by the studied angel group members differs from that generally described for independent angels.