Attributes of Angel and Crowdfunded Investments as Determinants of VC Screening Decisions

25 Pages Posted: 21 Apr 2017

See all articles by Will Drover

Will Drover

Independent

Matthew S. Wood

Southern Illinois University at Carbondale

Andrew Zacharakis

Babson College - Arthur M. Blank Center for Entrepreneurship

Date Written: May 2017

Abstract

This research explores whether relationships between young firms and certain early‐stage seed funders portray certification effects that influence venture capitalist (VC) screening decisions. Specifically, we analyze how varying attributes of angel and crowdfunded investments certify venture quality in the minds of VCs as they make due diligence screening decisions. Results from two experiments utilizing 104 VCs making 1,036 screening decisions demonstrate that the heterogeneous nature of the attributes of angels and the crowd can produce highly influential certification effects.

Suggested Citation

Drover, Will and Wood, Matthew S. and Zacharakis, Andrew, Attributes of Angel and Crowdfunded Investments as Determinants of VC Screening Decisions (May 2017). Entrepreneurship Theory and Practice, Vol. 41, Issue 3, pp. 323-347, 2017. Available at SSRN: https://ssrn.com/abstract=2956091 or http://dx.doi.org/10.1111/etap.12207

Will Drover (Contact Author)

Independent ( email )

No Address Available

Matthew S. Wood

Southern Illinois University at Carbondale ( email )

Rehn Hall - Mail Code 4626
Carbondale, IL Illinois 62901-4515
United States

Andrew Zacharakis

Babson College - Arthur M. Blank Center for Entrepreneurship ( email )

Babson Park, MA 02457-0310
United States

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