The Role of Personality in Angel Investing

Abstract

<jats:p> 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. </jats:p>

Business Angels Research in Entrepreneurial Finance: A Literature Review and a Research Agenda

“…A significant number of works analyse to what extent the entrepreneur's soft-skill qualities affect BAs' judgements, such as the entrepreneur's personality (Becker-Blease and Sohl, 2015;Murnieks et al, 2015), his/her entrepreneurial passion (Mitteness et al, 2012a;Hsu et al, 2014), his/her presentational skills (Clark, 2008) and the trust established between the entrepreneur and the angel investors (Fairchild, 2011;Nofsinger and Wang, 2011;Wallnöfer and Hacklin, 2013;Douglas et al, 2014;Maxwell and Lévesque, 2014).…”

Entrepreneurial opportunity decisions under uncertainty: Conceptualizing the complementing role of personal and cognitive abilities

“…Personality traits are enhanced by cognitive abilities. There have been studies showing a positive correlation between cognitive abilities and personality traits notably of the five-factor model (Rammstedt, Danner, & Martin, 2016;Tuten, Tracy L.;Bosnjak, 2001) and between personality and entrepreneurial outcomes (McClelland, 1987;Murnieks, Sudek, & Wiltbank, 2015). Such personality is achieved through stimuli which permeate the disposition of the individual positive attitude towards tasks and effective thinking.…”

Critical innovations in the UK peer-to-peer (P2P) and equity alternative finance markets for small firm growth

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