Do Female Investors Evaluate Pitches Differently?

Women have been steadily making their way into high ranking positions in the business world for some time now, one can expect to see a lot more female founders and investors than you could a decade ago. A study revealed that 43% women left corporate jobs to look after their families and then eventually came back to the playing field as entrepreneurs since balancing a job and family is not easy.

Female investors are becoming more and more common now and according to a study by the Babson College, female investors take business idea pitches from an entirely different viewpoint than male investors.

Let’s take a look at exactly what do female investors look for during a pitch, we will be taking notes from actual women investors to get a first-hand idea of what do these investors want.

Emphasis on The Details

According to Maxine Koven, female investors place more emphasis on the plan being proposed to exploit an opportunity, rather than the opportunity itself. While male investors will be more focused on the opportunity and its potential to grow, a female investor will be more interested in how you plan to get from A to B.

They Are Able to Relate Better

Terri Mead states that male investors usually do not take female pitchers seriously, they tend to zone out or lose interest and as a result, many female entrepreneurs are unable to have their idea approved. Female investors show higher involvement in what male and female entrepreneurs have to say, since they find it easier to relate to both genders.

Are More Inclined Towards Building Partnerships

Jill Royster, an investor and adviser at JCR consulting says that when female investors assess a pitch, they do so with the idea of potentially building a strategic relationship with the investor. A female investor will be more involved in a pitch since they will be looking for something that could be mutually beneficial for the investor and the entrepreneur.

Male Investors Question a Woman’s Ambition

The founder of 33 Capital, Stacey Feinberg has observed that women tend to be shyer when they ask for funding, this shyness is often perceived as a lack of ambition by male investors and as a result, they become less likely to invest in them. Male investors are much more focused on the financial side of things and therefore they do a bad job at assessing the pitcher’s body language.

Male Investors Only Accept What They Understand

Male investors are quick to reject an idea of they are not able to understand it, many investors shuffle past great idea simple because they are unable to figure them out. Penelope Linge says that female investors are more likely to probe into something that seems abstract before actually rejecting or passing it.

They Bring The Female Perspective to The Table

Women experience a lot of things differently from men and having their perspective on the investors’ table can prove to be quite beneficial.