VCs, Founders, and the Performance Gender Gap
64 Pages Posted: 1 Oct 2016 Last revised: 10 Dec 2019
Date Written: December 10, 2019
VC-financed startups led by women perform worse than startups led by men. Do VCs influence this performance gap? To answer this question, I compare the gender gap in performance between startups initially financed by syndicates led by VCs with only male GPs and startups financed by syndicates led by VCs with female GPs. I find a much larger performance gap among startups financed by syndicates with only male lead GPs. I show this disparity is driven by differences in VCs’ ability to evaluate female-led startups. These findings imply that VCs contributed to the performance gender gap in startups.
Keywords: venture capital, gender gap, entrepreneurship, firm performance
JEL Classification: G24, J16, G11, G32
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