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


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.

Journal or Publication:
Entrepreneurship Theory and Practice
Authors:
Will Drover
Matthew S Wood
Andrew Zacharakis
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Status:
publish
Year Published
2015
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