When to pray to the angels for funding: The seasonality of angel investing in new ventures

Business angel (BA) investors - private individuals who make investments in new ventures - represent a significant economic impact contributing to the survival of new firms. BAs contribute billions of investment dollars to new ventures, positively influencing their growth, their ability to procure further financing, and their successful harvest. While recent research has examined BAs and their investment decision making, no research to date has examined the presence of a seasonal trend to their investment patterns even though research on other types of investments often follow seasonal trends. Utilizing a sample of 2558 independent early-stage angel investment deals over a nine-year period, we analyze the monthly total of investment deals, the average funding amount, and the monthly total volume of angel investment activity. Results suggest a seasonal trend in angel investment deals comprised of specific peaks and valleys in activity. Practical implications include a preparation time for entrepreneurs and new venture teams prior to seeking BA investment, optimal seasons for pitch competitions, and the importance of financial planning for new ventures. Theoretical implications include the potential for punctuated equilibrium in new venture teams. Finally, we contribute by identifying a novel phenomenon ripe for future research.