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Angel investors often make investment decisions based on motivational cues communicated during pitches—including enthusiasm, preparedness, and commitment—to evaluate potentially important qualities of entrepreneurs. We tested the independent and interaction effects of these cues by having 72 angels complete 1,995 evaluations of 133 live pitches. We found a positive effect of preparedness on angel evaluations, an effect enhanced by one form of commitment. The relationship between enthusiasm and evaluations of funding potential varies depending on the type of commitment considered. Our findings suggest that enthusiasm, preparedness, and commitment should be treated as conceptually and empirically distinct.

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This paper offers an examination of the relationship between an entrepreneur's personality and angel investor evaluations of the management team of venture opportunities. The authors use the Five Factor Model of personality to investigate whether angels rate the management teams of investment opportunities differently, depending on the personality profile of the focal entrepreneur. We also analyse the influence of an entrepreneur's start-up experience and the angel investor's investing experience on the evaluation of the management team. Hierarchical linear modelling of 1,988 investment evaluations from 40 different angels suggests that investor ratings of management teams are influenced by the personality traits of the lead entrepreneur.