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Brain scans prove passion in pitch = interest in investors

Brain scans don't lie, and for the first time a study has used images taken of investors' brains during new business pitches to prove the passion of the pitch can make a difference in dollars doled out.

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September 19, 2019 by S.A. Whitehead — Food Editor, Net World Media Group

The best numbers and data in the world may prove a restaurant concept's value and even money-making potential, but to really score takers for whatever pitch your particular QSR is making, nothing beats passion. And while that's not necessarily a new notion — since most business people first heard it when they were selling scout cookies or junior high cookie dough kits — it is new that now that idea has scientific proof to back its validity. 

In fact, recently completed research from Case Western Reserve University, proves that potential investors' brains are actually built to pay greatest attention to passionate pitches over more dully delivered ones. 

The proof of this all comes from functional a randomized experiment of investors responses to business pitches. In that analysis, MRI brain scans, showed potential investors overall brain response increased about 26% for impassioned pitches over those that were less so. 

"Entrepreneurs should know: More engaged brains are more likely to meaningfully evaluate pitches," said Case Western Reserve Weatherhead School of Management A. Malachi Mixon III Professor of Entrepreneurial Studies Scott Shane, lead author of the research, published in the "Journal of Business Venturing."

"We believe our data makes a strong argument that displays of passion trigger heightened engagement that, in turn, makes investors more likely to write a check."

The bad news is that, of course, the vast majority of pitches still do end up in the trash can, as the researchers confirmed. But the study's results give credence to an old notion that had not been scientifically tested before. Further, as Shane stressed, the first thing you need to do to get buy-in for any pitch is actually get all those money men and women to pay attention to what you're saying and why your brand merits their financial backing. 

As Shane put it, "No one has ever invested in a startup they ignored." 

"Entrepreneurs should know: More engaged brains are more likely to meaningfully evaluate pitches. ... Our data makes a strong argument that displays of passion trigger heightened engagement that, in turn, makes investors more likely to write a check."                                                                              -Case Western Reserve Professor Scott Shane

Brain scans don't lie

The experiment itself involved potential investors who were shown entrepreneurs' pitch videos while inside a functional MRI machine that took images of their brains' neural activity as material was presented to each person. All the pitches were identical in content, but delivered differently. 

Those videos showing entrepreneurs making highly impassioned pitches — again of the same content — evoked what Shane said were increased investor fixation on the pitch in ways that overrode distractions, ultimately showing a cause-and-effect relationship between level of presentation passion and level of investor interest.

 Investors randomly assigned highly impassioned pitches ended up drawing 26% more interest than the low-passion pitches. In fact, fMRIs data showed investor neural responses to high-passion pitches increased neural engagement by 39% over lower-passion pitches.

"More engaged brains are more likely to meaningfully evaluate pitches--and not play on their phones or think about lunch--which should result in more favorable investor assessments," said Shane

"Passion is essential to establishing investor attention, and our study demonstrates measurable neural effects that offer a biological explanation for their tendency to react positively to enthusiasm and emotion of entrepreneurs," said Shane.

The researchers behind the study -- including Shane and co-authors Weatherhead School Associate Professor of Economics David Clingingsmith, University of Oklahoma Assistant Professor of Strategy and Entrepreneurship Will Drover and Northwestern University's Kellogg School of Management neuroscientist and Business Professor Moran Cerf — said they focused on presentations to so-called "informal investors" in the study. These are individuals like family and friends who typically provide most startup funding, according to the Global Entrepreneurship Monitor, including about $1 trillion globally between 2012-20. 

Editor's Note: The Perfect Pitch, one of the most popular events at the annual Fast Casual Executive Summit in Austin, Texas this year, features six restaurant entrepreneurs "passionately" pitching their concepts to an audience of fast casual restaurant brand leaders, part of the three-day event you can learn more about here. 

About S.A. Whitehead

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Pizza Marketplace and QSRweb editor Shelly Whitehead is a former newspaper and TV reporter with an affinity for telling stories about the people and innovative thinking behind great brands.