Abstract

Despite crowdfunding’s rise in popularity, literature has yet to focus on the dynamics of successful crowdfunding (Mollick, 2014) particularly with regard to heuristic processing and first impressions. This manuscript aims to explore how investors with bounded rationality and information asymmetry quickly narrow their choices using heuristic processing in the face of a multitude of investment alternatives. Heuristics reinforce the notion that our first visionary impressions matter and allow individuals to make fast decisions about narrowing options. Visual cues are not influenced by time, fatigue, or amount of information since individuals “tend to automatically attend to and process images more easily than written information.” (Chan & Park, 2014: 1). Within a crowdfunding context, videos are readily available and first impressions about the entrepreneurs are quickly made. We examine three immediately recognizable traits of an entrepreneur (attractiveness, competence and trustworthiness) and determine their effects on crowdfunding performance.

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