A value signaling model of business angels under exponential utility function

This paper considers that the value signaling of business angels is just the proportion of the initial net wealth of the entrepreneur invested in the project.The specific exponential utility function is used based on the different risk preference of entrepreneurs,and the establishment of value signaling of business angels is studied,especially under two different cases,i.e.risk aversion and risk loving.It is proved that when the utility of entrepreneurs is maximized,the value signaling of business angels  is in existence and can be expressed by a linear equation.