Pitching Trustworthiness: Cues for Trust in Early-Stage Investment Decision-Making

11 Pages Posted: 24 Jan 2013  

Lakshmi Balachandra

Babson College - Entrepreneurship Division

Date Written: August 2, 2011

Abstract

Most studies examining how early-stage investors determine in which entrepreneurs they will invest focus primarily on financial or objective factors of the business: market potential, return on investment, economic aspects of the business model without accounting for the interpersonal analysis – whether to trust the entrepreneur with time, money, and a long-term relationship. I used a sample of 101 videos of entrepreneurs pitching to a network of angel investors to determine the relationship between observed cues during the pitch and trust, and interest in investing. I identify specific cues that lead to the determination of trust in the entrepreneur during the pitch.

Suggested Citation

Balachandra, Lakshmi, Pitching Trustworthiness: Cues for Trust in Early-Stage Investment Decision-Making (August 2, 2011). Available at SSRN: https://ssrn.com/abstract=2205965 or http://dx.doi.org/10.2139/ssrn.2205965

Lakshmi Balachandra (Contact Author)

Babson College - Entrepreneurship Division ( email )

231 Forest Street
Babson Park, MA 02457-0310
United States
781-239-6446 (Phone)
781-239-4178 (Fax)

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