The saying “It takes one to know one” reflects a human tendency: the preference for the familiar. While the feeling of the known and trusted often makes it easier to navigate through life, it can have consequences—especially when it hinders openness to new and unfamiliar things. The tendency to rely on the tried and true when making decisions and to exclude the new can have particularly negative effects in the world of investing.
A study by the AI-based venture tech company Morphais shows that investment decisions in venture capital-funded startups are influenced not only by the talent of the founding team but also significantly by their similarity to the investor. Relying solely on gut feeling clouds judgment: decisions become purely subjective and are often influenced by bias.
Eva-Valerie Gfrérer, CEO and founder of Morphais, notes: “Relying solely on gut feeling is the wrong approach. We tend to overvalue the opinions of people who are close to us, which leads to subjective decisions and ultimately to homogeneous founder groups and low diversity.” In response, she founded Morphais in Berlin in 2020 and developed AI technology to identify and invest in innovative founders across Europe.
Key question today:
How can venture capitalists make their decision-making more objective in order to move beyond the familiar and give innovative startups greater opportunities?
For more information, visit:
Website: www.morphais.com/
LinkedIn of Eva-Valerie Gfrérer: linkedin.com/in/eva-gfrerer
LinkedIn of Tilo Bonow: www.linkedin.com/in/tilobonow/
More episodes of Business Class: @tilobonow
Guest suggestions or contact via email: podcast@piabo.net
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