Motivational Cues and Angel Investing: Interactions among Enthusiasm, Preparedness, and Commitment

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.