nb_cid nb_clickOther -tt-nb this.style.behavior='url(#default#homepage)';this.setHomePage('http://www.aol.com/?mtmhp=acm50ieupgradebanner_112313 network-banner-empty upgradeBanner
14
Search AOL Mail
AOL Mail
Video
Video
AOL Favorites
Favorites
Menu

Investors prefer business pitches from handsome men, U.S. study finds

ABC's

(Reuters) - Investors are more likely to put money into a businessidea pitched by a man than a woman, and even more so if the man is good looking, according to a new study.

The research, published on Monday in the Proceedings of the National Academy of Sciences and authored by researchers from MIT, Harvard and the Wharton School, reveals that a good idea and an experienced presenter are not always enough to win the financial backing required for a successful start-up.

"Our research (...) documents other critical criteria that investors use to make these decisions: the gender and physical attractiveness of the entrepreneurs themselves," it said.

The study examined several business pitches, both at real pitch competitions in the United States and in a controlled experiment setting, in which the content of the pitches was the same but the presenters were different.

It found investors "prefer pitches presented by male entrepreneurs compared with pitches made by female entrepreneurs, even when the content of the pitch is the same."

It added that "attractive males were particularly persuasive, whereas physical attractiveness did not matter among female entrepreneurs."

The authors said the study was significant because of the important role that entrepreneurship plays in U.S. economic growth and prosperity and because the survival of a start-up depends heavily on finding investors.

(Reporting by Richard Valdmanis; Editing by Cynthia Osterman)

Join the discussion

1000|Characters 1000  Characters
Pete March 10 2014 at 7:36 PM

Don't know much about attractiveness, but the glass ceiling (incidentally, biblical) rests immutable.

Flag Reply +2 rate up
2 replies
ghidra15 Pete March 10 2014 at 8:49 PM

Until they break on through to the other side. And there's nothing you Bible-thumpers can do to stop it.

Flag Reply +2 rate up
gggaloha Pete March 10 2014 at 8:50 PM

Pete, what do you mean "biblical" Didn't realize they had one in The Garden of Eden

Flag Reply +1 rate up
MRTRAVEL1 March 10 2014 at 11:56 PM

THERE IS NO NEED FOR SOME OF THE RUDE BEHAVIOR DISPLAYED ON THIS SHOW BY SOME

OF THESE ' SHARKS '........................................ IF YOU DON'T WANT TO INVEST JUST SAY NO!!!!!

NO NEED FOR THE CRAP FROM THESE GUYS....... I DON'T CARE HOW MUCH $$$$$$ THESE

GUYS HAVE..... IDEA IS TO BE KIND... THESE PITCHES ARE THESE PEOPLES DREAMS.....

NO NEED TO BE DOWN RIGHT MEAN...........

BY THE WAY..... ALL THESE GUYS TOGETHER.... DON'T HAVE WHAT OPRA HAS.....

EVER HEAR HER BE SOOOO DARN RUDE TO PEOPLE..... WHEN SHE DARN WELL COULD BE,.....

HAVE SOME CLASS!!!!!!!!!!!!!!!!!!

Flag Reply +3 rate up
3 replies
clyogi March 10 2014 at 11:26 PM

Just cook the books just like one member of the panel did before Mattel bought his company and then wrote off one hundred percent of the purchase price.

Flag Reply +1 rate up
chzyrider March 10 2014 at 11:09 PM

I've seen some great ideas pitched on the show for current products, but the sharks were not interested because the person/business hadn't already reached a certain level of annual sales or already have their product included in a certain number of stores.

Why do they also only seem to be interested in those that are currently at least marginally successful with current products and nevermind any upcoming great idea that just needs an earlier investment?

There may very well be the next great invention out there scribbled on a napkin, but we may never see it merely due to the inventor's personal lack of funding for prototyping, production or packaging services to get it out there for sale. If the cost of 3D printers become reasonable to the average person, we may likely see far more prototypes of people's ideas created in real form, to when in years past, those great products may have only remained as someone's dream.

Flag Reply +2 rate up
1 reply
petpetdon chzyrider March 10 2014 at 11:31 PM

There has to be a certain level of sales of a product for anyone to want to invest in the company. You need to have a certain revenue to be listed on the stock exchange. How many people invested in the first automobile? Light bulb?
The investors on Shark Tank are not their to fulfill people's pipe dreams. They are there to make money on the company they invest in.

Flag Reply +1 rate up
toddisit March 11 2014 at 7:07 AM

Old Fat n Ugly!

Flag Reply +1 rate up
Mr. ROC March 10 2014 at 9:18 PM

Having started my own business and having had to be the CEO of my fathers business, when he died un-expectantly, which I did and sold for a nice profit.....and being an avid watcher of ST, not having a business plan is the main reason a person does not come away with investment capital. If there is no plan....no money. This is quite simple.

Flag Reply +5 rate up
ljn4321 March 10 2014 at 8:34 PM

So the women who have really good ideas can be fat and ugly, but have to be smart. The guys who have good ideas have to look a certain way to be believable. Which means that if you are a guy who looks good and can bullshit you get the money. If a girl is smart and looks good she always gets the money from some guy. If she is fat and ugly she better be real smart. Any questions ?

Flag Reply +3 rate up
Patsy March 10 2014 at 8:29 PM

THAT SUCKS!!!!!!

Flag Reply +2 rate up
bds6543 March 10 2014 at 7:38 PM

Wonder what they would have done if Bill Gates came out to pitch his new business???? He's not that attractive.. physically and was generally a NERD.. when he was young. Go figure.

Flag Reply +6 rate up
okmckay247 March 10 2014 at 7:48 PM

I don't believe that I sale real estate in Colorado, I always do well. Beauty is in the eye of the beholder.

Flag Reply +2 rate up
aol~~ 1209600

Voting...

1413930380102

World Series

More From Our Partners