Bias in pitching
The VC investment procedure has four phases: deal sourcing, pitching, homework, and closing. So just why are we singling out of the pitch phase? The ultimate two phases are much more technical and numbers-oriented, so they’re less hospitable to bias. Contract sourcing, that will be extremely influenced by individual systems, is vunerable to bias however in an even more way that is overt Should your community of startup founders is all male, it is hard to argue you’re providing ladies possibilities. Nevertheless, it is during pitching, that gender bias can influence decision-making without loudly announcing itself as we currently know it.
Numerous academic research indicates that there’s a gender that is strong in several various aspects of the pitch procedure.
For example, one research from 2014 utilized identical slides and scripts, voiced by both women and men, with or without pictures for the ‘presenter’, then asked research individuals to speed the investment. Pitches voiced by men dramatically outperformed people that have a female narrator, and pitches where in actuality the picture that is narrator’s a good-looking man performed best of most. Results had been exactly the same whether or not the individuals (‘judges’) had been female or male. The scientists concluded, “Investors choose pitches presented by male entrepreneurs in contrast to pitches produced by feminine entrepreneurs, even if this content of this pitch may be the exact exact exact same. ”
Bias additionally seems in exactly just how business owners are questioned. Research from 2017 unearthed that ladies are expected various concerns than males whenever pitching to VCs. Across 180 business owners and 140 VCs during the TechCrunch competition, guys were regularly asked more ‘promotion’ questions (highlighting upside and prospective gains), while females had been asked more ‘preventive’ concerns (highlighting possible losings and danger mitigation). Continue reading The way the VC Pitch Process Is Failing entrepreneurs that are female