Extant research affirms that angel investors seek passionate entrepreneurs but questions surround whether there is value in passion itself, or if it is instead used as a marker for other important ...characteristics like tenacity and inspirational leadership. Employing both a qualitative and quantitative study, we find that angels value passion in addition to tenacity, as well as both together, when evaluating entrepreneurs for investment. We also find that the entrepreneurial experience of angels positively moderates the value provided by passion and tenacity.
•A mixed-methods design examines passion in angel investing.•Passion and tenacity significantly influence investment evaluations.•Entrepreneurial experience of the angel moderates the passion/tenacity interaction.
Despite interest in understanding the role passion plays in investor decision making, little is known about the conditions under which perceived passion is likely to play a significant role in the ...funding decision process. We first establish a relationship between perceived passion and evaluations of funding potential, then use affective reactivity as a theoretical framework to explore how several individual characteristics of angel investors impact the relationship between perceived passion and evaluations of funding potential. The results indicate that the relationship is stronger for angel investors who are older, more intuitive, have a high openness personality, or those who are motivated to mentor. Surprisingly, the relationship weakens for angels who are extraverted and those who have a promotion-dominated regulatory focus.
► We examine what factors impact whether passion leads to higher evaluations of funding potential. ► We establish a relationship between perceived passion and evaluations of funding potential. ► Age, cognitive style, openness personality, and motivation to mentor act as positive moderators. ► Extraverted and promotion dominated regulatory focus angels are less influenced by passion.
Angel investors often make investment decisions based on motivational cues communicated during pitches—including enthusiasm, preparedness, and commitment—to evaluate potentially important qualities ...of entrepreneurs. We tested the independent and interaction effects of these cues by having 72 angels complete 1,995 evaluations of 133 live pitches. We found a positive effect of preparedness on angel evaluations, an effect enhanced by one form of commitment. The relationship between enthusiasm and evaluations of funding potential varies depending on the type of commitment considered. Our findings suggest that enthusiasm, preparedness, and commitment should be treated as conceptually and empirically distinct.
Although similarity attraction theory is often utilized to explain why people form relationships with similar others, we utilize diversity research to look beyond surface–level demographic ...characteristics similarity to explain situations when angels form interpersonal relations with angels with dissimilar deep–level personal characteristics due to a strong desire to receive information and cognitive benefits. We use data collected from a chapter of one of the largest angel organizations in the United States. Our results show that although individuals often form relations with similar others, conditions exist when angels exert the extra effort required to form relations with dissimilar others.
The meteoric rise, dramatic fall, and spectacular comeback associated with Steve Jobs' career path is an evocative example of the risks and rewards associated with following a high-tech ...entrepreneurial career. While research on entrepreneurs has primarily focused on their characteristics, there is limited research on the career paths of entrepreneurs in either the careers or the entrepreneurship literature. The purpose of this paper is to propose a new model of entrepreneurial careers that better reflects the realities of pursuing a career in the high-tech computer industry. The proposed model considers the role that stages, phases, and ages play in the careers of high-tech entrepreneurs.
The Role of Personality in Angel Investing Murnieks, Charles Y.; Sudek, Richard; Wiltbank, Robert
International journal of entrepreneurship and innovation,
02/2015, Letnik:
16, Številka:
1
Journal Article
Recenzirano
This paper offers an examination of the relationship between an entrepreneur's personality and angel investor evaluations of the management team of venture opportunities. The authors use the Five ...Factor Model of personality to investigate whether angels rate the management teams of investment opportunities differently, depending on the personality profile of the focal entrepreneur. We also analyse the influence of an entrepreneur's start-up experience and the angel investor's investing experience on the evaluation of the management team. Hierarchical linear modelling of 1,988 investment evaluations from 40 different angels suggests that investor ratings of management teams are influenced by the personality traits of the lead entrepreneur.
Because of the momentous impacts of COVID-19, many sectors have had to adopt new ideas and mindsets to ensure survival. According to an ongoing Small Business Pulse Survey by the U.S. Census Bureau, ...an average of 44% of recent respondents across multiple sectors believe it will take more than six months for operations to return to normal. ...of the pandemic, we have seen online attendance double and more angel investors see deal flow from outside their area.
Entrepreneurs who lead fast growth startup companies often need external financing to grow, and often turn to Angel investors for early stage equity financing. Although it is estimated that Angel ...investing exceeds $22 billion per year (e.g., Sohl, n.d.), there is little research on Angel investing (e.g., Freear, Sohl, & Wetzel, 2002). This study examines how a group of investors from the largest Angel organization in the U.S. rated 57 entrepreneurs on investment criteria (business attributes and entrepreneur personality traits). Big Five personality profiles were gathered on these entrepreneurs to supplement a model predicting investor interest. While most studies on investment criteria have used a retrospective approach, methods in the present study capture investors' perceptions of an entrepreneur and business opportunity during the screening phase. The findings of this study show that perceived trustworthiness of the entrepreneur is the most important attribute of the entrepreneur. Findings also indicate that particular business attributes (e.g., revenue potential, exit route, and management team) are strong indicators of a business opportunity advancing to due diligence. There is evidence that perceptions of both trustworthiness and enthusiasm mediate the relationship between extraversion and investor interest. The findings of this study imply that entrepreneurs should pay close attention to how they pitch their company. They should attend to their show of enthusiasm and trustworthiness as well as clearly articulate their revenue potential, exit routes, and management team. Similarly, investors should be aware of the relationship between perceived trustworthiness, perceived enthusiasm, and extraversion and how this relates to their evaluation of entrepreneurs and business opportunities during the screening process. Limitations, practical implications, and suggestions for future research are discussed.
Abstract
Marine algae are central to global carbon fixation, and their productivity is dictated largely by resource availability. Reduced nutrient availability is predicted for vast oceanic regions ...as an outcome of climate change; however, there is much to learn regarding response mechanisms of the tiny picoplankton that thrive in these environments, especially eukaryotic phytoplankton. Here, we investigate responses of the picoeukaryote Micromonas commoda, a green alga found throughout subtropical and tropical oceans. Under shifting phosphate availability scenarios, transcriptomic analyses revealed altered expression of transfer RNA modification enzymes and biased codon usage of transcripts more abundant during phosphate-limiting versus phosphate-replete conditions, consistent with the role of transfer RNA modifications in regulating codon recognition. To associate the observed shift in the expression of the transfer RNA modification enzyme complement with the transfer RNAs encoded by M. commoda, we also determined the transfer RNA repertoire of this alga revealing potential targets of the modification enzymes. Codon usage bias was particularly pronounced in transcripts encoding proteins with direct roles in managing phosphate limitation and photosystem-associated proteins that have ill-characterized putative functions in “light stress.” The observed codon usage bias corresponds to a proposed stress response mechanism in which the interplay between stress-induced changes in transfer RNA modifications and skewed codon usage in certain essential response genes drives preferential translation of the encoded proteins. Collectively, we expose a potential underlying mechanism for achieving growth under enhanced nutrient limitation that extends beyond the catalog of up- or downregulated protein-encoding genes to the cell biological controls that underpin acclimation to changing environmental conditions.
