Perceived Passion and Funding Success: The Moderation of Entrepreneur Self-Efficacy and Experience

Abstract

This study investigated the effects of perceived passion on evaluations of funding potential, as well as the moderating effect of two important entrepreneur-related variables which are dominant in entrepreneurial financing research: entrepreneurial self-efficacy and successful previous founding experience. Data was collected during real startup pitch competitions, in which 228 investors evaluated 85 early-stage ventures. The results indicate that perceived entrepreneur passion was positively associated with evaluations of funding potential. Among entrepreneurs with who exhibited high levels of entrepreneurial self-efficacy the association between perceived entrepreneur passion and evaluations of funding potential was positive and significant but was not significant for entrepreneurs with low levels of entrepreneurial self-efficacy. However, counter to the conceptual model, the findings show that successful previous founding experience did not have a direct or a moderating effect on investors’ evaluations of funding potential.