Abstract

Although much research has investigated the criteria by which angels and venture capitalists decide whether to invest in a new venture proposal, little is known about how investors evaluate “live” verbal presentations. Using dynamic response technologies, we collected the second-by-second ratings of 25 venture capitalists as they evaluated in real-time 18 presentations made in a real financing event. By synchronizing this data with an audio-visual record of each presentation, we can pinpoint what kind of information proves most influential in “moving” investors’ evaluations up or down. In turn, we use dynamic panel data analysis to assess the effects of different arguments. Our results suggest that not all arguments are equal, and that their effect is moderated by the manner in which arguments are presented.

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