Abstract

The ability to understand both the decision-making process of funders and the way in which entrepreneurs might appeal to that process have long represented key points of scholarly interest. In attempt to gain insight into these phenomena, extent research has generally been premised on the assumption that funder’s decisions to provide capital are driven by their economically rational responses to entrepreneurs’ communicated pitches. Alternatively, relatively little scholarly effort has been dedicated to understanding whether the decision-making process of funders might be influenced by emotion-based responses, such as state-based positive affect. This article suggests that the decision of funders (in the crowd-funding context) to provide capital is influenced both by economically rational criteria and emotional considerations. In doing so, we provide insight into the way in which funders make capital allocation decisions when faced with relatively lower levels of objective, concrete information than is generally available in traditional investment contexts.

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