Pitching imperfectly

Oec. — June 2025

Can admitting flaws actually help entrepreneurs gain investor support? Professors Lauren Howe and Jochen Menges explored this question by analyzing startup pitches, focusing on how different types of self-disclosed imperfections impact funding outcomes. They distinguished between two categories of flaws: agency-deficit flaws (e.g., insecurity or self-doubt) and agency-excess flaws (e.g., arrogance or control issues).

Their research, which included an analysis of Kickstarter campaigns, found that entrepreneurs who shared agency-deficit flaws received more support—but only when investors identified with those same flaws. In these cases, revealing personal struggles fostered psychological closeness and investor support. However, disclosing agency-excess flaws provided no such benefit and could even backfire.

These insights suggest that owning up to your weaknesses isn’t universally persuasive. Instead, the success of flaw disclosure depends on what kind of imperfection is revealed and who is listening. In entrepreneurial settings where authenticity is increasingly valued, this research highlights the importance of strategic self-awareness: openness can be powerful, but only when it builds genuine connection.

Article by Lauren Howe