The short message service Twitter has played a prominent role in US politics in recent weeks and months and attracted a lot of attention. Even in business, Twitter users’ tweets are being closely followed and used as a basis for decision-making. A new study shows that venture capitalists can also be influenced by Twitter sentiment when valuing start-up companies from the high-tech sector. “However, the sentiment signals on Twitter say nothing about the long-term investment success of such a start-up. Patent applications, for example, are much better suited for this,” said Professor Andranik Tumasjan from Johannes Gutenberg University Mainz (JGU) in Germany. He conducted the study together with Professor Reiner Braun and Dr. Barbara Stolz from the Technical University of Munich. The results were published in the renowned Journal of Business Venturing.
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Source: Phys.org