Abstract
Startups need access to capital to grow and thrive. In this work, we present two complementary studies to examine whether and how the use of humor in business pitches influences funding success. In Study 1, we use data coded from 130 business pitches of the television show “Shark Tank”. Findings show that using humor (vs. no humor) in business pitches increased funding likelihood by up to 25%. In Study 2, we aimed to provide further insights into the role of humor in business pitches and performed an experimental study with 253 financial experts that evaluated one of three scripted and recorded business pitches. Findings showed that the use of positive (negative) humor significantly increases (decreases) funding amount. Moreover, we reveal perceived competence of the pitcher as the underlying process and find that the effects work for experienced as well as unexperienced pitchers. Taken together, this research provides new insights into how humor influences pitching success and offers important insights for entrepreneurs and investors.