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

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  • Will Drover
  • Matthew S. Wood
  • Andrew Zacharakis

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

  • Will Drover & Matthew S. Wood & Andrew Zacharakis, 2017. "Attributes of Angel and Crowdfunded Investments as Determinants of VC Screening Decisions," Entrepreneurship Theory and Practice, , vol. 41(3), pages 323-347, May.
    • Handle: RePEc:sae:entthe:v:41:y:2017:i:3:p:323-347
    DOI: 10.1111/etap.12207
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