Gender disparity in angel financing

Sharon Poczter () and Melanie Shapsis ()
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Sharon Poczter: Cornell University
Melanie Shapsis: Cornell University

Small Business Economics, 2018, vol. 51, issue 1, No 2, 55 pages

Abstract: Abstract 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.

Keywords: Angel financing; Women entrepreneurs; Start-up capital (search for similar items in EconPapers)
JEL-codes: G29 J16 L26 M13 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (17)

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DOI: 10.1007/s11187-017-9922-2

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