3 August 2022 | Newsletter

Welcome to The Fight for Fairer Funding newsletter where we share the latest in the fight for fairer funding in investment, raise awareness and provide education in line with our Mission. This newsletter from Funding Focus founder, David B. Horne, is part of the platform that sheds light on the uneven playing field that female and under-represented entrepreneurs of all genders face when it comes to raising capital for their businesses. We hope you enjoy it!

Read our latest edition below.

One question I get asked often is, “Why do you think investors don’t invest in female founders?”.

One answer is: Cognitive Bias.

In my book, Funded Female Founders, I talk about Cognitive Bias and share my findings from interviews conducted with experts in the fields of human cognition, bias and gender differences in venture financing: Dr Itiel Dror and Dr Dana Kanze.

“There is no question. The hard statistics and the first-hand stories both show that there is bias against female entrepreneurs. While I acknowledge some men are misogynists, I would like to think for most investors, the reason for this is rather less malicious: cognitive bias driving the skew away from women.”

Dr Dror’s research found that there are eight sources of bias and that they are not mutually exclusive. Dr Kanze’s shows how this plays out in the types questions asked of female entrepreneurs, and the significant impact it has on the level of funding they secure and the valuation at which it is secured.

Here is an excerpt from the book on Cognitive Bias”

In most cases, bias is unintentional and occurs without the person displaying it even being aware of it. Blissful ignorance, one might say. This needs to change.

Read the full chapter in my book, Funded Female Founders: How to traverse the uneven playing field and secure funding to grow your business by grabbing a copy here.

What are your thoughts on Cognitive Bias and how it affects the field of fundraising and female entrepreneurs? Please share your thoughts in the comments.

Until next time…

With love and gratitude,

David

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