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A microethnographic study of investment decisions in early-stage entrepreneurship

Research project Investors often do not make investment decisions in a rational way, especially in the entrepreneurial context, where there is usually a lack of data that an investor could use to support investment decisions. In this project, we use video methods to study how investors make their decisions under these conditions, with particular attention to group dynamics and emotional expressions in the group.

For entrepreneurship to work well, it is important that the most promising companies get the resources they need. Research shows that investors often find it difficult to identify promising companies, and a lively stream of research is exploring what can be done about it. We contribute a microethnographic video-based study on the processes of the interaction between entrepreneurs and investors, which is currently not well understood.

Head of project

Project overview

Project period:

2025-01-01 2026-12-31

Funding

Jan Wallanders och Tom Hedelius Stiftelse

Participating departments and units at Umeå University

Faculty of Social Sciences, Umeå School of Business, Economics and Statistics

Research area

Business administration
  • Project members

    External project members

    Prof. Hendrik Wilhelm (https://www.uni-wh.de/en/contact-person/hendrik-wilhelm)

    Assistant Prof. Clarissa Weber (https://www.qmul.ac.uk/sbm/staff/academic/profiles/dr-clarissa-e-weber.html)

Project description

In this project, we study meetings between entrepreneurs and investors, where entrepreneurs present their ideas and investors decide whether or not to invest. We follow meetings with video cameras and study if, when and how emotions are expressed, how these emotions affect others in the room, and how these dynamics influence investment decisions. The project will contribute to a better understanding of why entrepreneurs are differentially successful in persuading investors and the results will also help investors develop the ability to understand how emotions and group dynamics influence investment decisions.

Latest update: 2025-03-06