What do they think and what do they say? Gender bias, entrepreneurial attitude in writing and venture capitalists’ funding decisions

Malmström, Malin; Voitkane, Aija; Johansson, Jonny; Wincent, Joakim

doi:10.1016/j.jbvi.2019.e00154

Cited by 30 publications

(12 citation statements)

References 30 publications

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“…Not just male VCs, even female VCs displayed the same behaviour, rejecting the VC industry's male-dominated structure as a reason for discrimination (Alsos et al 2006). Malmström et al (2020) found cognitive resistance among VCs while evaluating females. Males with higher entrepreneurial attitudes got promotional consideration while females with a higher entrepreneurial attitude got preventive considerations, with the most deserving female entrepreneurs experiencing the most cognitive resistance through preventive questions.…”

Section: Gendermentioning

confidence: 97%

Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision

Vazirani

Bhattacharjee

2021

The Journal of Entrepreneurship

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Investments in new ventures are risky due to lack of conventional form of quantitative information and untested products. Venture capitalists (VCs) are seen to target such new ventures for high-risk premium but with little success. Existing research has investigated and identified a variety of qualitative factors that impact VCs’ investment decisions; however, many research gaps still exist. Works published in the last two decades show the evolution in the preference of factors with the focus shifting from venture’s team and product to factors such as intellectual property rights, economic crisis and social capital. It was found that the factor’s role was limited to the binary scale (positive and negative), which undermines its effect. The purpose of this review is to provide a comprehensive framework of factors that influence VCs’ investment decisions and show theoretical research gaps. Accordingly, we have segmented factors into two macro-categories: ‘internal’ and ‘external environment’, and presented a detailed framework of the factors that influence VCs’ investment decisions. Further, we argue to consider the subjectivity of qualitative factors and to explore the role of a factor in the decision-making.

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Section: Gendermentioning

confidence: 97%

Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision

Vazirani

Bhattacharjee

2021

The Journal of Entrepreneurship

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“…Therefore, female-founded startups are less likely to raise equity financing in male-dominated sectors due to gender role incongruity (Hebert, 2020). Similarly, microstudies have demonstrated gendered rhetoric and cognitive scripts regarding the social construction of entrepreneurial potential when capital providers make funding decisions (Malmström et al, 2017(Malmström et al, , 2020. To overcome these barriers, women entrepreneurs tend to emphasize signals that are consistent with gender stereotypes when presenting their ventures (Lee & Huang, 2018).…”

Section: Gender Role Congruity Theorymentioning

confidence: 99%

Women Hold Up Half the Sky? Informal Institutions, Entrepreneurial Decisions, and Gender Gap in Venture Performance

Zhao

Ling

2020

Entrepreneurship Theory and Practice

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Studies that apply gender role congruity theory (GRCT) have focused on resource providers’ biased evaluations and women entrepreneurs’ internalization of gender stereotypes as primary mechanisms explaining the gender gap in venture performance. We provide an institutional foundation for GRCT and argue that informal political–cultural institutions—namely, government interference in market-based competition and cultural beliefs regarding gender inequality—differentially shape male versus female entrepreneurs’ venture performance through their influences on entrepreneurs’ industry selection and participation in after-work social activities. Our study of 7,626 Chinese entrepreneurial firms provides strong support for our arguments and contributes to women’s entrepreneurship theory and practice.

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“…The gender role of men embodies more agentic, self-oriented, and dominance-oriented behaviors (Anglin, Wolfe, et al, 2018;Jonason & Fletcher, 2018). Indeed, a substantial body of research has shown that the "masculine" stereotype of an entrepreneur affords men a variety of benefits within entrepreneurship because this stereotype is consistent with male gender roles (e.g., Jennings & Brush, 2013;Kanze et al, 2018;Malmström et al, 2020). This same research has consistently illustrated that women often suffer from bias in entrepreneurship domains because they do not appear consistent with the stereotype.…”

Section: Gender and Raising Funds For Social Ventures Versus Commerci...mentioning

confidence: 99%

Venturing for Others, Subject to Role Expectations? A Role Congruity Theory Approach to Social Venture Crowd Funding

Anglin

Courtney

Allison

2021

Entrepreneurship Theory and Practice

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Scant attention has been paid to the differences in fundraising for social versus commercial ventures. We adopt a role congruity theory perspective to argue that because women and people of color are more congruent with role expectations attributed to social entrepreneurs, they experience better fundraising performance when raising crowdfunded capital for social ventures compared to commercial ventures. We then argue entrepreneur race heightens fundraising differences for men and women. Results indicate women experience better funding performance when funding a social versus commercial venture—an effect that is larger for women of color. Men of color experience worse performance when funding a social venture. We find no differences for White men.

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What do they think and what do they say? Gender bias, entrepreneurial attitude in writing and venture capitalists’ funding decisions

Cited by 30 publications

References 30 publications

Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision

Entrepreneurial Finance in the Twenty-first Century, a Review of Factors Influencing Venture Capitalist’s Decision

Women Hold Up Half the Sky? Informal Institutions, Entrepreneurial Decisions, and Gender Gap in Venture Performance

Venturing for Others, Subject to Role Expectations? A Role Congruity Theory Approach to Social Venture Crowd Funding

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