Working Paper: NBER ID: w29847
Authors: Shai Bernstein; Kunal Mehta; Richard R. Townsend; Ting Xu
Abstract: We analyze a field experiment conducted on AngelList Talent, a large online search platform for startup jobs. In the experiment, AngelList randomly informed job seekers of whether a startup was funded by a top-tier investor and/or was funded recently. We find that the same startup receives significantly more interest when information about top-tier investors is provided. Information about recent funding has no effect. The effect of top-tier investors is not driven by low-quality candidates and is stronger for earlier-stage startups. The results show that venture capitalists can add value passively, simply by attaching their names to startups.
Keywords: No keywords provided
JEL Codes: C93; G24; J22; J24; L26
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Reputable venture capitalists (G24) | Attract employees (M51) |
| Top-tier investor badge (G11) | Clicks on job postings (J68) |
| Top-tier investor badge (G11) | Clicks for further information (Y50) |
| Top-tier investor badge (G11) | Clicks to begin application process (J62) |
| Top-tier investor badge (G11) | Submissions of applications (C01) |
| Top-tier investor badge (G11) | Employee preference for startups (L26) |
| Recently funded badge (I22) | Employee interest (M51) |
| Top-tier investor badge (G11) | Responsiveness varies by startup stage (M13) |
| Top-tier investor badge (G11) | Responsiveness varies by job seeker location (J68) |
| Reputable VCs (G24) | Expand candidate pool without compromising quality (D79) |