The Key to Attracting Venture Capitalists: Show Passion

The factor that swayed them, Dr. Tsay determined, was body language from entrepreneurs that showed passion.

“Certain aspects of information such as visuals and visible passion really lead decision makers,” says Dr. Tsay, whose research was published in the Academy of Management Discoveries last year.

In the studies, 1,855 participants—both novice and experienced investors—reviewed portions of 19 pitch competitions and were asked to predict which entrepreneur won, or who they thought should win. Different participants were given different types of records of the competition: audio, video or transcripts only, as well as full videos.

Participants who saw only short snippets of silent videos were able to select the correct competition winner out of three possible contestants 52% of the time, Dr. Tsay says. Participants who used both visuals and sound were correct 43.6% of the time, while those who only read transcripts were correct 32.7% of the time.

The participants who saw videos said that they were motivated by a range of factors, including an entrepreneur’s display of passion and confidence. In the videos, entrepreneurs didn’t use slides, so it was easier to focus on their physical presence.

The studies took place over the course of 10 years and sought out pitch presentations of diverse teams—so, even with different cultural norms of projecting passion, participants were able to designate winners, says Dr. Tsay, who did her research as an associate professor at University College London. (The research, however, didn’t define what specific visual cues signify passion.)

The research holds important lessons for entrepreneurs, as well as investors, she says. Most company founders know that showing passion is important, but often they become focused on getting all the information they can into a pitch. It’s crucial for them not to forget to display how much they care about their company, she says.

“When we’re investing so much time in building these startups, sometimes we might neglect our softer skills or characteristics,” says Dr. Tsay.

The research holds important lessons for venture capitalists too, she says. During presentations, investors may unknowingly be swayed by visual cues, not the information they’re given—which means that they are letting passion override facts.

“There is a possibility that even experienced and knowledgeable investors are resorting to or depending on these shortcuts, because this is an overwhelming amount of information for them,” Dr. Tsay says.

Ms. Dizik is a writer in Chicago. She can be reached at reports@wsj.com.