Arrogant and charismatic startup founders may be more successful in crowdfunding.
A study shows that the personality of the startup’s founder may influence to have a better prominence in crowdfunding campaigns.
Crowdfunding is often used by startups founders to get business off the drawing board. It has been a valuable and viable way for businesses to raise money. In the midst of so many other startups with good ideas competing for investments, why would your business stand out? The personality of the startup’s founder may influence to have a better prominence in crowdfunding.
Supported in the literature, that contains strong evidence that personality characteristics are essential to an interaction between the entrepreneur and the investor, a study presented in HICSS (Hawaii International Conference on System Sciences) , suggest that hubristic and charismatic entrepreneurs are more successful in sourcing capital.
An empirical setting involved a true experiment of crowdfunding pitch videos were recorded in collaboration with a professional actor and was analysed the perception of this by the crowd (60 business students). To differentiate personalities, the videos differed in the actor outfit, the rate of speaking, inflection and explanatory model. The experiment concluded that: “Hubris and charisma combine several personality traits that are frequently attributed to entrepreneurial leaders and affect how entrepreneurs are perceived by stakeholders, such as (non-professional) investors.” That is, startup founders with traces of arrogance and charisma are more associated by investors as more trustworthy and passionate.
Although the experiment was carried out with non-professional investors, with the outcome of the study, we can realize the importance of personal characteristics to influence the startup raising funding. In addition, we can say that there are other factors that can determine sourcing capital, such as social networking connections.
How much do you think personal characteristics can to influence the success of entrepreneurs? Comment below!
 Sundermeier, J. and Kummer, T., 2019, January. Startup Founders’ Personality Attributes in Crowdfunding Campaigns: The Relevance of Hubris and Charisma in Raising Seed Funding Online. In Proceedings of the 52nd Hawaii International Conference on System Sciences.