Gender disparity in angel financing

This study uses unique hand-collected data from a televised entrepreneurial pitch competition to examine gender differences in obtaining angel financing. Results indicate that while the yield rates between male and female teams do not differ, a gender disparity in the amount of angel funding does in...

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Bibliographic Details
Published inSmall business economics Vol. 51; no. 1; pp. 31 - 55
Main Authors Poczter, Sharon, Shapsis, Melanie
Format Journal Article
LanguageEnglish
Published New York Springer 01.06.2018
Springer US
Springer Nature B.V
Subjects
Angel investors
Business and Management
Entrepreneurial finance
Entrepreneurship
Females
Financing
Gender differences
Gender inequality
Industrial Organization
Investments
Males
Management
Microeconomics
Pitch
Startups
Teams
Ventures
Angel financing
L26
Start-up capital
Women entrepreneurs
J16
M13
G29
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Summary:This study uses unique hand-collected data from a televised entrepreneurial pitch competition to examine gender differences in obtaining angel financing. Results indicate that while the yield rates between male and female teams do not differ, a gender disparity in the amount of angel funding does in fact exist. Female teams receive less capital and provide more equity relative to their male counterparts, even when controlling for typical determinants of investment, such as industry and prior company success. Further, we find that female teams receive investments with lower valuations than their male counterparts largely because they initially offer higher equity stakes for less capital. Thus, this suggests that limitations to angel financing of female entrepreneurial ventures may be partly self-imposed.
ISSN:0921-898X
1573-0913
DOI:10.1007/s11187-017-9922-2