Are Early Stage Investors Biased Against Women?
49 Pages Posted: 17 Apr 2017 Last revised: 3 Feb 2018
Date Written: January 31, 2018
We examine whether male investors are biased against female entrepreneurs. To do so, we use a proprietary dataset from AngelList, which allows us to observe various private interactions between fundraising startups and potential investors. We find that female founders garner less interest from male investors compared to observably similar male founders. In contrast, the same female founders garner more interest from female investors. Using unique aspects of the AngelList setting, we show that 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
Suggested Citation: Suggested Citation