Date of Award
8-2024
Document Type
Dissertation
Degree Name
Doctor of Philosophy (PhD)
Department
Management
Committee Chair/Advisor
Chad Navis
Committee Member
Matt Hersel
Committee Member
Amy Ingram
Committee Member
Lori Tribble Trudell
Committee Member
Greg Fisher
Abstract
Chapter 1: In this qualitative study, I examine how entrepreneurial investors assess and decide which early-stage ventures to support based on the entrepreneurial pitch. These decisions are made in highly uncertain environments where the risk of incorrect evaluations is significant. Drawing on the literature on categorization and sensemaking, I induce a typology of five common ways investors typecast entrepreneurs based on salient auditory and visual cues from the pitch. This work provides an important foundation for understanding biases in the investor-entrepreneur dynamic, as well as the implications of such typecasting for entrepreneurial resource support.
Chapter 2: In this quantitative study, I surveyed 124 self-identified U.S. investors to explore differences in their reliance on intuition, rationality, or a more balanced approach in their decision-making. My hypotheses examined these differences based on investor experience and their classification as an angel investor or venture capitalist. I also investigated the relationship between investor experience and overconfidence in decision-making. The findings revealed no significant difference in decision-making tendencies based on investor experience. Additionally, contrary to my predictions and prior research, experienced investors were found to be less confident than their less experienced counterparts. Finally, I found angel investors to rely more on intuition than venture capitalists; no significant difference in the use of rationality between the two groups; and nuanced differences in how each group engaged in balanced decision-making. Together, these findings contribute a more refined understanding of the underlying mechanisms of investor decision-making.
Chapter 3: In my final study, I utilize a new and distinct dataset comprising live-video-recorded entrepreneurial pitches, a pitch “scorecard” completed by investors at the time of the pitch, and an abbreviated investor decision-making survey (excluding measures of overconfidence) completed by the investors evaluating the entrepreneurs. These elements provide insights into investor support inclinations across three dynamics: financial, social, and human capital. I employ both qualitative and quantitative methods in my analysis. I incorporate the typology developed in my first study in an effort to determine the form of investor support the different types of entrepreneurs identified in my typology are likely to receive. The results indicate that the type of entrepreneur significantly impacts investor support decisions for two types of investor support, but not human capital support.
Recommended Citation
Preedom, Jonathan C., "Ah, You’re One of Those Entrepreneurs: An Investigation Into Investors’ Evaluations and Support Of Typecasted Entrepreneurs" (2024). All Dissertations. 3665.
https://open.clemson.edu/all_dissertations/3665