Towards Personalization of Venture Capital Contracts, Considering the Personality Type of Entrepreneur

Purpose: Contracts and their provisions can change the entrepreneur’s performance and maximize company’s profit and performance. The purpose of this study is to answer the question whether there is a difference between entrepreneurs’ preferences in contract provisions or not. For this purpose, four aspects of contracts are considered including incentive, control, decision-making and risk. Also, the Myers-Briggs Personality Type Indicator (MBTI) is used to identify the personality types of entrepreneurs, which identifies five personality types for entrepreneurs - ENTP, ENTJ, ESTJ, ISTJ, and INTJ.Design/ Methodology/ Approach: In this study, survey research was used to collect data from entrepreneurs. Based on the data received from two hundred feedbacks, the hypothesis of the existence of a meaningful relationship between entrepreneurs’ preferences in contract provisions was tested using the chi-square test.Findings: The result of this research shows that ENTJ, ISTJ and INTJ personality types have the most significant difference in choosing contract provisions and ENTP and ESTJ types have the least significant difference in their preferences in choosing contract provisions. Also, two personality types ENTJ and INTJ are among the personality types that are distinguished in the selection of incentives and all 5 personality types have different preferences for control provisions. It should be noted that in risk aspect, type of contract was the most important and in decision-making there was no specific preference among all 5 personality types.

Towards Personalization of Venture Capital Contracts, Considering the Personality Type of Entrepreneur Keywords:

Entrepreneur , Venture Capital Contracts , Entrepreneurs’ preferences in VC contracts , MBTI Typology