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 last two phases are a lot more technical and numbers-oriented, so they’re less hospitable to bias. Contract sourcing, that will be very influenced by individual systems, is vunerable to bias however in a far more overt means: if the community of startup founders is all male, it is hard to argue you’re offering ladies possibilities. Nevertheless, it is during pitching, once we presently know it, that sex bias can influence decision-making without loudly announcing it self.
Multiple academic research indicates that there’s a strong sex bias in several various aspects of the pitch procedure.
By way of example, one research from 2014 used slides that are identical scripts, voiced by both women and men, with or without pictures associated with ‘presenter’, after which asked research individuals to rate the investment. Pitches voiced by males somewhat outperformed individuals with a lady narrator, and pitches in which the narrator’s picture had been a good-looking man performed most useful 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 business owners in contrast to pitches produced by feminine business owners, even though the information for the pitch may be the exact same. ”
Bias additionally seems in just exactly exactly how entrepreneurs are questioned. Analysis from 2017 discovered that women can be expected questions that are different guys whenever pitching to VCs. Across 180 business owners and 140 VCs during the TechCrunch competition, guys had been regularly expected more ‘promotion’ questions (highlighting upside and prospective gains), while ladies were expected more ‘preventive’ concerns (highlighting possible losings and danger mitigation). Continue reading