Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital

Venture capital investment has serious conflicts of interest and information asymmetry. Venture capitalists often make investment decisions on the basis of the passion of entrepreneurs, including enthusiasm and preparedness, in the process of interacting with them. Most of the previous research on r...

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Autores principales:	Hongtao Yang, Hangyu Shi, Yenchun Jim Wu, Lei Zhang, Shuting Xie
Formato:	article
Lenguaje:	EN
Publicado:	Frontiers Media S.A. 2021
Materias:	entrepreneurial passion venture capitalists willingness to invest relational capital signaling theory Psychology BF1-990
Acceso en línea:	https://doaj.org/article/2317bcd1e2b745b2a31b7c23adbe6d4a
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spelling	oai:doaj.org-article:2317bcd1e2b745b2a31b7c23adbe6d4a2021-11-11T06:21:54ZEntrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital1664-107810.3389/fpsyg.2021.728589https://doaj.org/article/2317bcd1e2b745b2a31b7c23adbe6d4a2021-11-01T00:00:00Zhttps://www.frontiersin.org/articles/10.3389/fpsyg.2021.728589/fullhttps://doaj.org/toc/1664-1078Venture capital investment has serious conflicts of interest and information asymmetry. Venture capitalists often make investment decisions on the basis of the passion of entrepreneurs, including enthusiasm and preparedness, in the process of interacting with them. Most of the previous research on relational capital have focused on the cooperative relationship between suppliers and buyers. However, the role of relational capital in the process of partnership between venture capitalists and entrepreneurs has not been revealed. On the basis of signaling theory, we explore the relationship between entrepreneurial passion and venture capitalists’ willingness to invest. We also examine the mediating and moderating roles of relational capital. This study takes 79 projects between venture capitalists and entrepreneurs as samples for empirical analysis to verify our hypothesis. Results show that entrepreneurs’ enthusiasm and preparedness have a significant positive impact on venture capitalists’ willingness to invest. Relational capital plays a mediating role between entrepreneurial passion and venture capitalists’ willingness to invest. Relational capital positively moderates the relationship between preparedness and venture capitalists’ willingness to invest but has no moderating effect between enthusiasm and venture capitalists’ willingness to invest. Results deepen the understanding of the relationship between entrepreneurs’ passion and venture capitalists’ willingness to invest, which has guiding significance for venture capital practice in China.Hongtao YangHangyu ShiYenchun Jim WuYenchun Jim WuLei ZhangShuting XieFrontiers Media S.A.articleentrepreneurial passionventure capitalistswillingness to investrelational capitalsignaling theoryPsychologyBF1-990ENFrontiers in Psychology, Vol 12 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	entrepreneurial passion venture capitalists willingness to invest relational capital signaling theory Psychology BF1-990
spellingShingle	entrepreneurial passion venture capitalists willingness to invest relational capital signaling theory Psychology BF1-990 Hongtao Yang Hangyu Shi Yenchun Jim Wu Yenchun Jim Wu Lei Zhang Shuting Xie Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
description	Venture capital investment has serious conflicts of interest and information asymmetry. Venture capitalists often make investment decisions on the basis of the passion of entrepreneurs, including enthusiasm and preparedness, in the process of interacting with them. Most of the previous research on relational capital have focused on the cooperative relationship between suppliers and buyers. However, the role of relational capital in the process of partnership between venture capitalists and entrepreneurs has not been revealed. On the basis of signaling theory, we explore the relationship between entrepreneurial passion and venture capitalists’ willingness to invest. We also examine the mediating and moderating roles of relational capital. This study takes 79 projects between venture capitalists and entrepreneurs as samples for empirical analysis to verify our hypothesis. Results show that entrepreneurs’ enthusiasm and preparedness have a significant positive impact on venture capitalists’ willingness to invest. Relational capital plays a mediating role between entrepreneurial passion and venture capitalists’ willingness to invest. Relational capital positively moderates the relationship between preparedness and venture capitalists’ willingness to invest but has no moderating effect between enthusiasm and venture capitalists’ willingness to invest. Results deepen the understanding of the relationship between entrepreneurs’ passion and venture capitalists’ willingness to invest, which has guiding significance for venture capital practice in China.
format	article
author	Hongtao Yang Hangyu Shi Yenchun Jim Wu Yenchun Jim Wu Lei Zhang Shuting Xie
author_facet	Hongtao Yang Hangyu Shi Yenchun Jim Wu Yenchun Jim Wu Lei Zhang Shuting Xie
author_sort	Hongtao Yang
title	Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
title_short	Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
title_full	Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
title_fullStr	Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
title_full_unstemmed	Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital
title_sort	entrepreneurial passion and venture capitalists’ willingness to invest: the role of relational capital
publisher	Frontiers Media S.A.
publishDate	2021
url	https://doaj.org/article/2317bcd1e2b745b2a31b7c23adbe6d4a
work_keys_str_mv	AT hongtaoyang entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital AT hangyushi entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital AT yenchunjimwu entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital AT yenchunjimwu entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital AT leizhang entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital AT shutingxie entrepreneurialpassionandventurecapitalistswillingnesstoinvesttheroleofrelationalcapital
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Entrepreneurial Passion and Venture Capitalists’ Willingness to Invest: The Role of Relational Capital

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