Attracting Early-Stage Investors: Evidence from a Randomized Field Experiment
جذب سرمایه گذاران اولیه: شواهدی از یک آزمایش گشت تصادفی
THE JOURNAL OF FINANCE • VOL. LXXII, NO. 2 • APRIL 2017
This paper uses a randomized field experiment to identify which start-up characteristics are
most important to investors in early-stage firms. The experiment randomizes investors’ information sets of fund-raising start-ups.
The average investor responds strongly to information about the founding team,
but not to firm traction or existing lead investors.
We provide evidence that the team is not merely a signal of quality, and that investing based on team information is a rational strategy.
Together, our results indicate that information about human assets is causally important
for the funding of early-stage firms and hence for entrepreneurial success.