Are Early Stage Investors Biased Against Women?
49 Pages Posted: 17 Apr 2017 Last revised: 19 Oct 2017
Date Written: October 17, 2017
We examine whether male investors are biased against female entrepreneurs. To do so, we use a proprietary dataset from AngelList covering fundraising startups. We find that female founders are less successful with male investors compared to observably similar male founders. In contrast, the same female founders are more successful than male founders with female investors. The results do not appear to be driven by differences across founder gender in startup quality, sector focus, or risk. Given that investors are predominately male, our results suggest that an increase in female investors is likely necessary to support an increase in female entrepreneurship.
Keywords: gender, entrepreneurship, angel investing, venture capital
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