Wealthing VC Club

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Understanding how Quantity of Deals Impact Angel Investors' Decisions and Satisfaction

Version 1

The Wealthing VC Club is sponsoring a study by Aaron Gitin on how the impact of the number of investment opportunities on angel investors' decisions and satisfaction.

Angel investors use their own capital to fund early-stage companies. Empirical research suggests that in order to manage the high risks associated with early-stage investments, angel investors should distribute their investments among at least 30 companies. Furthermore, it is assumed that having a large number of potential investments to choose from will increase the investor’s intention to select a few in which to invest. To manage a large number of deals to choose from, many angel investors join angel groups or invest through syndicates.

Paradoxically, studies on consumer behavior indicate that consumer’s satisfaction is hindered by having a larger number of choices.

We seek to investigate a crucial question in the field of behavioral economics: does the number of investment opportunities impact angel investors' intentions, actions, and satisfaction? This research seeks to deepen our understanding of angel investors behavior.

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Why This Study Matters:

We are not aware of any research that combines evaluating the relationship between quantity of deals presented and invested, and expectations about rewards and post-investment satisfaction.

Our Research Focus:

We aim to explore a key question in Behavioral Economics: Does the number of investment opportunities influence angel investors' decisions, actions, and overall satisfaction? As an exploratory study, the survey is purposefully simple and anonymous.

Meet the Researchers:

Aaron Gitin is a research intern at the Wealthing VC Club in California. A Reed College graduate, he has studied behavioral economics, the cross-section of Psychology and Economics. Gitin's senior thesis research examined the “Paradox of Choice” and the concept of optimizing one’s number of options to maximize satisfaction.
The study is supervised by our founder, Alicia Castillo Holley, PhD. who investigated the role of academic scientist in wealth created from academic research. Beyond her roles as entrepreneur and investor, Dr. Castillo Holley has vast experience in qualitative and quantitative research in the field of entrepreneurship and finance.

Why Your Participation Matters:
Participants will contribute valuable insights that could reshape investment strategies and enhance satisfaction both individually and within angel investor groups.

Conflict of Interests:
There is no compensation for participants. The Wealthing VC Club provides accredited investors access to vetted deals, on closing rounds. To our knowledge there is no conflict of interest as we we do not collect any personal information, and the study will be published as a white paper on our web and our linkedin page. Mr. Aaron Gitin is a recent graduate who wishes to expand his understanding on Financial Decision Theory. To our knowledge there is not published paper that addresses the Paradox of Choice from an Angel Investing perspective.

Privacy:
The study does not require any form of identification from responders, and there is no tracking code on the survey. All data is self-reported. Results are will be published on our website and linkedin page, and there is no requirement to have any affiliation to our groups to access such results.

Sponsorship:
This study is sponsored by the Wealthing VC Club.

Begin the Survey

Version 1

The Wealthing VC Club is sponsoring a study by Aaron Gitin on how the number of investment opportunities affects angel investors' decisions and satisfaction.

Angel investors use their own capital to fund early-stage companies. Empirical research suggests that in order to manage the high risks associated with early-stage investments, angel investors should distribute their investments among at least 30 companies. Furthermore, it is assumed that having a large number of potential investments to choose from will increase the investor’s intention to select a few in which to invest. To manage a large number of deals to choose from, many angel investors join angel groups or invest through syndicates.

Paradoxically, studies on consumer behavior indicate that consumer’s satisfaction is hindered by having a larger number of choices.

We seek to investigate a crucial question in the field of behavioral economics: does the number of investment opportunities impact angel investors' intentions, actions, and satisfaction? This research could potentially reshape our understanding of investment decision-making.

Aaron Gitin is a research intern for the Wealthing VC Club in California. A Reed College graduate, he has studied behavioral economics, the cross-section of Psychology and Economics. Gitin's senior thesis research examined the “paradox of choice” and the concept of optimizing one’s number of options to maximize satisfaction. His research on the Paradox of Choice will extend into the realm of Angel Investing.

We hope to use this research to support Aaron Gitin’s interest in exploring Financial Decision Theory. This study will examine the concept of maximizing both investment amount and satisfaction in the unique setting of angel investor groups, adding a fresh perspective to the field and potentially adding value to these groups and associations.

Begin the Survey

Version 2

The Wealthing VC Club is sponsoring a study by Aaron Gitin on how the number of investment opportunities affects angel investors' decisions and satisfaction.

Why This Study Matters:

Angel investors use their own capital to support early-stage companies. Research suggests that spreading investments across at least 30 startups can help manage the inherent risks. Additionally, having more options might encourage investors to select a few promising deals. To handle numerous opportunities, many angel investors join groups or invest through syndicates.

However, there’s a twist: consumer behavior research shows that having too many choices can actually decrease satisfaction.

Our Research Focus:

We aim to explore a key question in behavioral economics: Does the number of investment opportunities influence angel investors' decisions, actions, and overall satisfaction? Our findings could transform how we understand and approach investment decisions.

Meet the Researcher:

Aaron Gitin, a research intern with the Wealthing VC Club and a Reed College graduate, is leading this study. With a background in behavioral economics and a deep dive into the "paradox of choice," Gitin's research will explore how optimizing investment options impacts satisfaction and decision-making in angel investing.

Why Your Participation Matters:

By participating in this survey, you’ll contribute valuable insights that could reshape investment strategies and enhance satisfaction within angel investor groups. Your input will support Aaron Gitin's exploration of Financial Decision Theory and bring fresh perspectives to the field.

Ready to Make an Impact?

Start the Survey and help us uncover the answers that could revolutionize angel investing!

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