Gender Gap in Business Angel financing

Andrea Bellucci, Gianluca Gucciardi, Rossella Locatelli and Cristiana Schena
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Rossella Locatelli: Universita' degli Studi dell'Insubria
Cristiana Schena: Universita' degli Studi dell'Insubria

No 175, Mo.Fi.R. Working Papers from Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences

Abstract: We study the relevance of the gender of contracting parties involved in equity early-stage financing using transaction-level data on Business Angel (BA) investments around the world between 2018 and 2020. In particular, we analyze whether the gender of BA investor has an impact on the size of the financial transaction and whether female-owned businesses are disadvantaged with respect to male-owned businesses. Then, we offer insights into possible channels and underlying mechanisms that could drive BAs' behaviors. According to our findings, female-owned businesses receive less equity financing than their male counterparts. This effect is independent from the information available to BAs on the target and persists even when unobservable individual factors are taken into consideration. This disadvantage seems to be linked to male Business Angels' taste prejudice, independently from the information available to the investor.

Keywords: Gender-based discrimination, Female-owned enterprises, Access to finance, start-up; SME financing, Business Angel (search for similar items in EconPapers)
JEL-codes: G21 G24 G32 G41 J16 M13 (search for similar items in EconPapers)
Pages: 28
Date: 2022-06
New Economics Papers: this item is included in nep-cfn, nep-dem, nep-ent, nep-gen and nep-pay
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