Entrepreneur's Facial Trustworthiness, Gender, and Crowdfunding Success

This study examines whether facial trustworthiness mitigates information asymmetry in crowdfunding. Using photos of entrepreneurs who launched campaigns on Kickstarter, we construct a comprehensive facial trustworthiness index by employing machine learning-based facial detection techniques. We find that entrepreneurs who look more trustworthy are more likely to have their campaigns funded, as they receive more in the amount pledged and attract more funders. We also find that the effect of facial trustworthiness is more prominent for female entrepreneurs. Moreover, these results are not driven by facial attractiveness. Overall, our findings suggest that facial trustworthiness alleviates funders’ concerns about uncertainty in crowdfunding.