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Entrepreneurial Rhetoric and Business Plan Funding

Entrepreneurial Rhetoric and Business Plan Funding

Thomas H. Allison, Aaron F. McKenny, Jeremy C. Short
Copyright: © 2014 |Pages: 15
ISBN13: 9781466649996|ISBN10: 1466649992|EISBN13: 9781466650008
DOI: 10.4018/978-1-4666-4999-6.ch002
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MLA

Allison, Thomas H., et al. "Entrepreneurial Rhetoric and Business Plan Funding." Communication and Language Analysis in the Corporate World, edited by Roderick P. Hart, IGI Global, 2014, pp. 21-35. https://doi.org/10.4018/978-1-4666-4999-6.ch002

APA

Allison, T. H., McKenny, A. F., & Short, J. C. (2014). Entrepreneurial Rhetoric and Business Plan Funding. In R. Hart (Ed.), Communication and Language Analysis in the Corporate World (pp. 21-35). IGI Global. https://doi.org/10.4018/978-1-4666-4999-6.ch002

Chicago

Allison, Thomas H., Aaron F. McKenny, and Jeremy C. Short. "Entrepreneurial Rhetoric and Business Plan Funding." In Communication and Language Analysis in the Corporate World, edited by Roderick P. Hart, 21-35. Hershey, PA: IGI Global, 2014. https://doi.org/10.4018/978-1-4666-4999-6.ch002

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Abstract

How entrepreneurs disclose the blemishes of a new venture to investors may be an indicator of relative riskiness and thus may predict how much funding a venture receives. Drawing from venture funding research, the authors propose that hardship rhetoric will have a curvilinear relationship with investment received by a venture. This hypothesis is supported by an analysis of rhetoric reflecting hardship in the memoranda and business plans of 86 high-technology ventures. In addition, the authors find that concrete language in memoranda is positively related to the amount of capital raised. In sum, this study presents the first examination of how the language used in business plans and communications with potential investors influence venture fundraising.

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