The role of entrepreneur’s experience and company control in influencing the credibility of passion as a signal in equity crowdfunding

In this study, we focus on entrepreneurs’ passion as a signal in influencing fundraising success via equity crowdfunding. Moreover, we look at the role of entrepreneurs’ task-specific experience–industry and startup experience- and company control in influencing the credibility of passion as a signal. Through a text analysis of 606 equity crowdfunding campaigns in the UK, we found that entrepreneurs’ displayed passion positively influences funding success and that entrepreneurs’ startup experience reinforces the credibility of this signal, i.e., the impact of passion on fundraising success. Additionally, we found that when entrepreneurs retain more shares of the company, the influence of displayed passion on funding success is greater. Our study contributes to the crowdfunding literature highlighting the importance of entrepreneurs’ passion in influencing fundraising success via crowdfunding, and what influences the credibility of passion as a signal.