Study Reveals Surprising Bias in Investment Community: Men's Responses to Women's Appearance Affect Investment Decisions
A recent study has shed light on a surprising bias in the investment community. It found that men investors' responses to women entrepreneurs' physical appearance can influence their investment decisions. The research, which involved 106 experienced investors, highlights the need for introspection within the industry to ensure fair and equitable practices.
The study, conducted by researchers at the University of California, Los Angeles, and the University of Colorado Boulder, investigated whether and how biases against women entrepreneurs are linked to men investors' responses to their physical appearance. The investors were randomly assigned to watch one of two identical pitches, delivered by different actresses, one considered highly attractive. The results were striking.
Investors' evaluations of the entrepreneur's proposal were positively influenced by their assessments of her competence. However, when presented with an attractive woman entrepreneur, men investors had a marked increase in cortisol levels. This increased stress hormone led to evaluations that the entrepreneur's proposal would progress through the screening stage. Contrary to expectations, a woman entrepreneur's attractiveness positively influenced men investors' assessments of her competence. The study also noted that women founders often face varied and negatively biased decisions from investors.
The study emphasizes the importance of proactive measures to ensure equitable and fair investment practices. It calls for introspection within the investment community to address these biases. The person presented as an attractive entrepreneur in the studied presentation was Tilly Norwood, a virtual actress created and introduced by Eline van der Velden, the CEO and founder of the AI production studio Particle6, at the Zurich Film Festival.
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