MIT Sloan Management Review Article on How Algorithms Can Diversify the Startup Pool

  • 15m
  • Elizabeth Weingarten, Michaela Barnett, Morela Hernandez, Roshni Raveendhran
  • MIT Sloan Management Review
  • 2019

Data-driven approaches can help venture capital firms limit gender bias and make better, fairer investment decisions.

Research shows that men are more likely to receive promotion-focused (risk-loving) questions from investors; for women, prevention-focused (risk-averse) inquiries are the norm. Investors also tend to disfavor stereotypically female behaviors, such as being soft-spoken and nurturing (versus bold and assertive), whether those behaviors are exhibited by men or women. But even when ventures are pitched in the same way, investors significantly prefer pitches made by men over those made by women.

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  • MIT Sloan Management Review Article on How Algorithms Can Diversify the Startup Pool