How to pitch to and interact with business angels?

Abstract

In this study, we investigate the impact of entrepreneurial pitches and interactions between entrepreneurs and business angels (BAs) on investment outcomes. Instead of an experimental- or survey-based research sample, we use actual pitches to observe the delivery (preparedness, and passion) and content of the pitch and interaction (information on the product/service, market, and entrepreneur). We found that while preparedness has a significant positive influence on angel investing, passion does not. Furthermore, our empirical results show that the degree to which the pitch and interaction convey favorable information about the entrepreneur is positively related to angel investment decisions. Positive content about product characteristics and market attractiveness do not have a significant effect.