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Training Aspiring Entrepreneurs to Pitch Experienced Investors: Evidence from a Field Experiment in the United States

Author

Listed:
  • Clingingsmith, David

    (Case Western Reserve University)

  • Shane, Scott
Abstract
Accredited investors finance more than 75,000 U.S. start-ups annually. We explain how training aspiring entrepreneurs to pitch their new business ideas to these investors affects their odds of continued funding discussions. We model accredited investors’ decision to continue investigation as a real option whose value is a function of their experience and the information contained in the entrepreneurs’ pitches. We derive four hypotheses from the model, which we test through a field experiment that randomly assigns pitch training at four elevator pitch competitions. The data support all four hypotheses, and are inconsistent with alternative explanations.

Suggested Citation

  • Clingingsmith, David & Shane, Scott, 2017. "Training Aspiring Entrepreneurs to Pitch Experienced Investors: Evidence from a Field Experiment in the United States," SocArXiv yzpvf, Center for Open Science.
    • Handle: RePEc:osf:socarx:yzpvf
    DOI: 10.31219/osf.io/yzpvf
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    References listed on IDEAS

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    1. Robert W. Fairlie & Dean Karlan & Jonathan Zinman, 2015. "Behind the GATE Experiment: Evidence on Effects of and Rationales for Subsidized Entrepreneurship Training," American Economic Journal: Economic Policy, American Economic Association, vol. 7(2), pages 125-161, May.
    2. Dean Karlan & Martin Valdivia, 2011. "Teaching Entrepreneurship: Impact of Business Training on Microfinance Clients and Institutions," The Review of Economics and Statistics, MIT Press, vol. 93(2), pages 510-527, May.
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    4. Peter Coughter, 2012. "The Art of the Pitch," Palgrave Macmillan Books, Palgrave Macmillan, number 978-1-137-51233-8.
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    Cited by:

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    2. Satterstrom, Patricia & Polzer, Jeffrey T. & Kwan, Lisa B. & Hauser, Oliver P. & Wiruchnipawan, Wannawiruch & Burke, Marina, 2019. "Thin slices of workgroups," Organizational Behavior and Human Decision Processes, Elsevier, vol. 151(C), pages 104-117.
    3. Gonzalez-Uribe, Juanita & Hmaddi, Ouafaa, 2022. "The multi-dimensional impacts of business accelerators: what does the research tell us?," LSE Research Online Documents on Economics 115461, London School of Economics and Political Science, LSE Library.

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