Physical Attractiveness, Same-Sex Stimuli, and Male Venture Capitalists’ Financial Risk-Taking

The study explores how physical attractiveness affects financial risk-taking among male venture capitalists (VCs) in the European IT sector, using data from 341 ventures. It reveals that VCs with below-average attractiveness are more influenced by the attractiveness of male entrepreneurs, often taking more risks to compensate for perceived deficiencies. Conversely, VCs with above-average attractiveness are generally more risk-tolerant but less swayed by entrepreneurs' looks. The research suggests that attractiveness impacts decision-making through compensatory mechanisms and the halo effect, with implications for understanding financial behaviors in venture capital. The study also considers pattern hair loss as a factor linked to attractiveness, affecting VC decisions.