Behavioral Modeling of Angel Investors’ Investment Decision Makings

Angel investors are the most important supportive groups for innovations and new ideas in developed countries. Therefore, studding their investment behavior is really important. This research aims to study angel investment behaviors in terms of behavioral finance. Using pilot and Delphi study, 16 variables as behavioral finance indicators were determined, which then turned to 31 observable variables which they were basis for the research questionnaire. 183 angels’ questionnaires were collected as our sample. Our data were analyzed by factor analysis and then structural equation modeling. Seven latent variables were realized as affecting behavioral finance factors by factor analysis, which their relationship next with one decision making factor were analyzed by structural equation modeling. Finally, it can be stated that factors respectively including: Hope, Retrospective, Overconfidence, simplistic and Risk have a positive relationship and factors including: Mental Accounting and Self Attribution have a negative relationship with angel investors’ decision makings.