Patrick Smith

About Me

My research focuses on how socio-cognitive determinants influence strategic decision-making among owners and managers of privately held enterprises, such as entrepreneurial start-ups and family firms. Empirically, I examine high-profile industries and individuals, including celebrity investors in start-ups and the independent film industry.

I have extensive teaching experience at Bocconi. I am the course director for the Fundamentals of Management (30450) course in the BESS program. I have taught Entrepreneurship and Innovation Management (30521) for three consecutive years and currently serve as a co-lecturer in Family Business Strategies (30267). Additionally, I have worked as a Teaching Assistant in nine courses, including Corporate Strategy (20944), Management Consulting (20325), and Organizational Behavior (30465).

I will be on the job market this fall and will be attending the DRUID25 Conference in Toronto and the Academy of Management Annual Conference in Copenhagen.

JOB MARKET PAPER

Starstruck! The Role of Celebrity Investors in Start-Up Fundraising

Over the past ten years, the venture capital industry has seen a significant rise in celebrity investors, with the number of celebrity-backed investments increasing from 34 deals in 2014 to 387 deals in 2021. Contrary to investment signals sent by traditional high-status investors such as venture capital firms and established corporations which are high in both prominence and proven quality, signals sent by celebrity investors are extremely high in prominence but exceptionally low in relevant or proven quality.  This research investigates how external audiences interpret and respond to celebrity investor signals, and the impact that has on start-up financing.   Leveraging literature on signaling theory, we argue that the source credibility, trustworthiness, and attractiveness associated with a celebrity investor will positively influence external investor sentiment towards the focal firm, thereby garnering a premium for the celebrity-backed firm.  By combining start-up investor data with celebrity Q-Rating data over a 20-year period, our findings reveal that firms tend to raise larger sums of capital and raise capital more quickly in the subsequent financing round following a celebrity’s investment.  However, we also observe that these subsequent deals are financed by larger investment syndicates whose members have less deal making experience. As a result, we find that while the additional capital increases the survival rate of celebrity-backed startups, celebrity investors have no impact on positive exits such as IPOs or Acquisitions.
 

WORKING PAPERS

• Patrick Smith, Yangyang Cheng, Mario Daniele Amore. "Starstruck! The Role of Celebrity Investors in Start-Up Fundraising"
• Patrick Smith. "Casting the Sequel: How Awards-Based Recognition Influences Repeat Collaboration Efforts in the Independent Film Industry"
• Patrick Smith. "The Impact of Socioemotional Factors on Litigation Decisions for Family Firms"