Do Female Investors Support Female Entrepreneurs? An Empirical Analysis of Angel Investor Behavior
11 Pages Posted: 1 Aug 2019
Date Written: 2019
There is an ongoing debate on why female entrepreneurs face greater challenges than their male counterparts do in raising capital for their companies. Rooted in homophily – theory supporting the notion that women support women – is the argument that there are not enough female investors to support female-led firms. In the context of accredited investor-investee exchanges, we explored whether the gender of investor and the gender of investee’s CEO are related. Using a United States sample of 529 investments from fiscal year 2018, we found a significant association between the gender of investor and the gender of the investee’s CEO. These findings suggest that homophily may be a key social mechanism through which gender can impede or promote investment decisions.
Keywords: Entrepreneurship, Investments, funding, gender
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