HERE COMES THE SUN: THE IMPACT OF INCIDENTAL CONTEXTUAL FACTORS ON ENTREPRENEURIAL RESOURCE ACQUISITION

• 成果类型: Article
• 署名作者: Dushnitsky, Gary; Sarkar, Sayan
• 署名单位: University of London; London Business School; Hong Kong University of Science & Technology
• 刊物名称: ACADEMY OF MANAGEMENT JOURNAL
• ISSN/ISSBN: 0001-4273
• DOI: 10.5465/amj.2019.0128
• 发表日期: 2022
• 页码: 66-92
• 关键词: VENTURE CAPITALISTS EVALUATIONS; INVESTOR GUT FEEL; negative affect; weather conditions; decision-making; mood; PASSION; ORGANIZATIONS; preparedness; performance

摘要

This paper focuses on investment decisions in nascent, seed-stage startups, where information is scarce and uncertainty is intense. Entrepreneurship literature has shown that investment is a function of the investor-startup pair; some studies have investigated startup characteristics, while others have focused on investor traits. We complement extant work by studying factors beyond the investor-startup pair; namely, incidental contextual factors such as changes in the physical environment. Drawing on affect-asinformation theory, we conjecture that, in the face of intense uncertainty, sunnier days may affect investors' mood and result in a greater likelihood of investment. Archival and experimental analyses inform our predictions. The former utilizes proprietary data on 1,335 startups graduating from European accelerators. Every accelerator holds a Demo Day, where startups pitch to investors. We find that graduating on a sunnier day increases the likelihood of investment. This effect is stronger under intense uncertainty, where (a) startups are nascent, or (b) founders have limited human capital. An experimental study where prospective investors evaluate a Demo Day pitch yields further insights. We find a positive sunshine-investment association, and show that the association is mediated by investors' mood. Our findings complement extant work and contribute insights regarding seed-stage investment decisions.