Discounted: The effect of founder race on the price of new products

Drawing on both signalling theory and the linguistic framing perspective, we propose that the effectiveness of linguistic styles used by entrepreneurs when pitching their ideas to investors, manifested as funding success, depends on entrepreneurs’ ethnicity (white vs. non-white). Using a sample of 430 equity crowdfunding projects, we found that the use of a past-oriented linguistic style and concrete linguistic style led to greater funding...