One's Company, Two's a Crowd: Female Representation and the Value of Diversity in Startup Fundraising

Ivana Vitanova (), Gael Leboeuf, Laurent Vilanova and Valentina Dolce
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Ivana Vitanova: EM - EMLyon Business School
Gael Leboeuf: AMU - Aix Marseille Université
Laurent Vilanova: UL2 - Université Lumière - Lyon 2
Valentina Dolce: UL2 - Université Lumière - Lyon 2

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Abstract: This study examines how female representation within founding teams and the presence of a female CEO shape early-stage fundraising outcomes. Using a large sample of European seed and Series A startups, we find that mixed-gender teams raise more funding than all-female teams, but not more than all-male teams. Consistent with this asymmetric pattern, the relationship between female representation and funding amount is inverted U-shaped, with funding peaking at low levels of female representation. Having a female CEO is associated with a lower funding amount, both directly and by weakening the fundraising advantage associated with mixed-gender teams. These disparities persist even when the investor pool includes female investors. Overall, our findings suggest that investors reward gender diversity only within narrow bounds: once female representation exceeds a relatively low threshold, or extends to the venture's most prominent leadership role, it becomes a liability rather than an asset.

Keywords: Gender biases in entrepreneurial finance; Early-stage fundraising; entrepreneurial founding teams; Female CEO (search for similar items in EconPapers)
Date: 2026-06-01
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Published in International Conference of the French Finance Association (AFFI) 42nd, Jun 2026, Clermont-Ferrand, France

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05690313

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