Persuading Investors: A Video-Based Study

Allen Hu and Song Ma

No 29048, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Persuasive communication functions not only through content but also delivery, e.g., facial expression, tone of voice, and diction. This paper examines the persuasiveness of delivery in start-up pitches. Using machine learning (ML) algorithms to process full pitch videos, we quantify persuasion in visual, vocal, and verbal dimensions. Positive (i.e., passionate, warm) pitches increase funding probability. Yet conditional on funding, high-positivity startups underperform. Women are more heavily judged on delivery when evaluating single-gender teams, but they are neglected when co-pitching with men in mixed-gender teams. Using an experiment, we show persuasion delivery works mainly through leading investors to form inaccurate beliefs.

JEL-codes: C55 D91 G24 G4 G41 (search for similar items in EconPapers)
Date: 2021-07
New Economics Papers: this item is included in nep-big, nep-cmp, nep-ent, nep-exp and nep-isf
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