A proven formula to attract investors?

: an empirical analysis on how the entrepreneurial pitch influences the decision-making of Angel Investors

Abstract

This research analyzes how the entrepreneurial pitch influences the likelihood of securing funds for a new business. To do so, data on actual negotiations between angel investors and entrepreneurs are collected from 24 episodes of the television show “Shark Tank” aired in 2017. Results suggest that the delivery of the pitch substantially influences funding decisions of investors. The pitch emerges consequently as a crucial element for reducing information asymmetries between investors and investees. In particular, the completeness of a pitch and the provision of reasons for additional capital have a decisive impact on the investment outcome. By preparing a structured presentation and giving a concise explanation of the business model, the entrepreneur can signal his investment readiness to the financier and thereby increase the chances for receiving funding. Overall, these findings offer new insights on how investors evaluate early-stage ventures and emphasize the importance of an effective pitch delivery in influencing the decision-making of investors.

Date of Award	16 Jul 2018
Original language	English
Awarding Institution	Universidade Católica Portuguesa
Supervisor	Raffaele Conti (Supervisor)