The stereotype of an entrepreneur's elevator pitch calls for a polished and perfect performance, but what if the opposite is true? A study co-authored by Dr Jochen Menges of Cambridge Judge Business School shows that exposing one's flaws, specifically "bridging flaws" like insecurity, can attract similarly flawed investors and boost funding for ventures.
The study challenges the assumption that entrepreneurs who minimise their weaknesses are most influential. Instead, it shows that flaws can be more compelling than perfection, particularly when investors identify with the entrepreneur's bridging flaws.
The research distinguishes between bridging flaws and "distancing flaws," which highlight an excess of a desirable trait. The study finds that entrepreneurs may benefit from exceptionalism, but some succeed not despite but because of their flaws.
The findings draw on two experiments. Participants played an online investment game and distributed investments between different startups whose CEOs disclosed no flaw, a bridging flaw of insecurity, or a distancing flaw of arrogance. They were then asked to choose between two different startups whose CEOs were described as having the bridging flaw of being disorganised or the distancing flaw of being too orderly.
The study also examined evidence from the transcripts of five seasons of US reality television show "Shark Tank" in which investors back or reject an entrepreneur's pitch. The study acknowledges previous research findings that entrepreneurs who highlight their strengths can boost investment for their ventures, but notes that these insights "are somewhat at odds with the reality that it is often the insecure, disorganised, and somewhat nerdy entrepreneurs that succeed."
Entrepreneurs and other business leaders should be discerning in exposing flaws, considering both what kinds of flaws are likely to create social bonds as well as the attributes of the audience with whom they choose to share their flaws. The study suggests that leaders in a variety of contexts need not feel pressured to minimise their negative attributes but could selectively expose them to similar others to increase their influence.
In conclusion, not all flaws are created equal, and entrepreneurs who expose their flaws may attract investors with similar flaws and boost funding for their ventures. The study's findings challenge the assumption that confidence is all-important in attracting investment and suggest that selective exposure of flaws may increase influence in various business contexts.
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