scholarly journals Is there a gender gap in equity-based crowdfunding?

2021 ◽  
Author(s):  
Jörg Prokop ◽  
Dandan Wang
Keyword(s):  
Financial Institutions ◽  
Gender Gap ◽  
Venture Capitalists ◽  
Business Angels ◽  
Female Entrepreneurs ◽  
Equity Crowdfunding ◽  
Funding Success ◽  
Venture Funding

AbstractCompared to their male peers, female entrepreneurs tend to face greater obstacles in raising venture funding from business angels, venture capitalists, and financial institutions. In this paper, we investigate whether this gender gap also exists in equity crowdfunding. Based on data from the German equity crowdfunding market, we find that ventures with and without female managing directors are equally successful in raising capital when launching their first equity crowdfunding campaign. In contrast, the former are significantly less successful than their peers in seasoned equity crowdfunding campaigns, and this disparity cannot be fully explained by differences in other venture-related or entrepreneur-related characteristics. However, we also find that the gender gap in seasoned offerings narrows if female entrepreneurs set more ambitious funding thresholds. Overall, our results indicate that pitching their equity crowdfunding campaigns in a more promotion-oriented way is a sensible strategy for female entrepreneurs to improve funding success.

Gender Diversity Effects in Investment Decisions

2021 ◽  
Vol 30 (1) ◽  
pp. 134-152
Author(s):  
Lennard Hohl ◽  
Peter M. Bican ◽  
Carsten C. Guderian ◽  
Frederik J. Riar
Keyword(s):  
Gender Gap ◽  
Role Models ◽  
Business Models ◽  
Gender Diversity ◽  
Investment Decisions ◽  
Entrepreneurial Intentions ◽  
Success Rates ◽  
Business Angels ◽  
Female Entrepreneurs ◽  
Angel Investment

This study examines the gender gap in investment decisions in a prominent setting: the American TV show Shark Tank. Our study is based on a sample of 895 pitches from 10 seasons comprising 222 episodes from 2009 to 2019. Contradicting prior research, our findings suggest that female entrepreneurs are not discriminated against in pitch success rates, independent of their respective industrial settings. We find that the valuations from the entrepreneurs themselves (males overvalued their ventures by 57.19%) and final deal valuations (male deals were overvalued by 50.50%) are significantly lower for females, hinting towards a self-imposed gender gap in entrepreneurship and angel investing. As the gender gap in entrepreneurship and angel investment seems to result from a lower rate of entrepreneurial intentions by women, we suggest fostering female entrepreneurship by raising the number of female entrepreneurs and business angels who may serve as role models among those potential female entrepreneurs and business angels at the brink of becoming actual entrepreneurs, as demonstrated in Shark Tank. Particularly, in teams, mixed founder teams consisting of males and females may support the creation of promising start-ups with viable business models.

Determinants of Financial Inclusion Gender Gap in Ethiopia: Evidence From Decomposition Analysis

2021 ◽  
Author(s):  
Shemelis Kebede Hundie ◽  
Daniel Tadesse Tulu
Keyword(s):  
Financial Institutions ◽  
Gender Gap ◽  
Decomposition Analysis ◽  
Financial Inclusion ◽  
Gender Mainstreaming ◽  
Economic Activities ◽  
Debit Card ◽  
The World ◽  
Males And Females ◽  
Emergency Fund

Abstract In Ethiopia, the gender gap in financial inclusion is high, and the effect of socioeconomic variables on the gap is not well investigated. As a result, this study uses the World Bank’s Global Findex database from 2017 to analyze magnitude and determinants of the gender gap in financial inclusion in Ethiopia. Using Fairlie decomposition technique, we find statistically significant gender gap in all indicators of financial inclusion under study in Ethiopia. The result shows that the highest financial inclusion gender gap is observed in formal saving followed by formal account holding. The decomposition results show males are 16.5%, 16.6%, 8.9 %, 8.4 %t, and 5.8% more likely to have a formal account, formal saving, borrowing, emergency fund possibility, and debit card ownership, respectively. We further decompose these gaps using Daymont and Andrisani approach and the result reveals that differences in coefficients between males and females explain 57.7% in formal saving, 43.4% in formal account holding, and 110.9% in borrowing from formal financial institutions. About 54.2% of the total gender gap in possibility of raising emergcency fund is attributed to differences in characteristics/predictors between the two genders while gender gap in debit card holding is explained by the iteraction between differences in characterisctics and coefficients. Being older, more educated, and wealthier favor financial inclusion, with age, employment, and education having a greater effect. Furthermore, gaps in coefficients, productivity, and advantage to males and disadvantage to females aggravate the gender gap in financial inclusion in Ethiopia. Gender mainstreaming in economic activities to increase income, employment opportunities and education for females to bridge the gender gap in financial inclusion is important.

scholarly journals Venture financing in the era of increasing epidemiological risks

2021 ◽  
Vol 2021 (8) ◽  
pp. 68-80
Author(s):  
Mykhailo DYBA ◽  
◽  
Iuliia GERNEGO ◽  
Keyword(s):  
United States ◽  
The United States ◽  
Venture Capitalists ◽  
Financing Policies ◽  
Current Trends ◽  
Social And Economic Development ◽  
Venture Financing ◽  
Venture Funding ◽  
The Impact ◽  
First Time

The relevance of the study of venture financing development in the era of increasing epidemiological risks is considered within the current situation in society, namely the significant impact of COVID-19 on all sectors of social and economic development. This shows the urgency of a systematic justification of current trends and peculiarities of venture financing development, taking into consideration the COVID-19 situation. The above-mentioned aspects define the purpose of our study. The theoretical basis of our study means the analysis of the specifics and priorities of venture financing, considering the timeframe from venture financing formation to nowadays. Thus, the stages of evolution of views on venture financing are highlighted. The article examines the dynamics of venture financing globally, as well as the change of relevant indicators in Europe, Asia and the United States. In particular, along with the analysis of the total amount of venture financing in each of the considered markets, the volumes of venture financing agreements that were carried out for the first time were estimated. This allowed us to analyze the relevant trends and make conclusions on the priority objects for attracting the resources of venture investors in the era of growth of epidemiological risks, depending on the experience of venture capitalists. The article compares venture funding and the incidence of COVID-19 in some countries in Europe, Asia and the United States. The approaches of European experts to the assessment of the impact of COVID-19 on venture financing are revealed. The analysis of the relevant calculations provides the possibility to structure the priorities of modern venture investors depending on the sectoral distribution of COVID-19 influences. The practical value of the study is considered within a comprehensive analysis of trends in venture financing and assessment of changes in the priorities of venture investors, considering the increasing epidemiological risks. The research may be useful both in the context of developing public venture financing policies and within developing venture financing strategies at the business level.

Financier Search and Boundaries of the Angel and VC Markets

2018 ◽  
Vol 43 (6) ◽  
pp. 1223-1249
Author(s):  
Gurupdesh Pandher
Keyword(s):  
Risk Aversion ◽  
Risk Preferences ◽  
Venture Capitalists ◽  
Entrepreneurial Finance ◽  
Initial Value ◽  
Agency Model ◽  
Investment Return ◽  
Investment Returns ◽  
Venture Funding ◽  
Funding Cycle

This paper studies how critical entrepreneurial finance outcomes such as the investment return and equity division are shaped by venture characteristics, financier risk preferences, and competitive searching. Our analysis uses a double-hazard agency model in which financiers determine the equity division to maximize the expected utility of their investment return while entrepreneurs search for the best deal. Model results provide new theoretical insights on the venture funding cycle, the coexistence of angels/venture capitalists (VCs) with heterogeneous risk aversion, and risk separation in the entrepreneurial finance market. The model predicts that financiers with higher funding capacity and advisory capabilities (e.g., VC firms) will prefer to fund at later stages as their expected investment return rises with the venture’s initial value and financier productivity. Competitive searching by entrepreneurs enables financiers with a diverse set of risk preferences to coexist profitably by reducing the advantage (disadvantage) of lower (higher) risk aversion financiers and making investment returns more similar. Further, the model shows the emergence of a risk separation cutoff beyond which only angels/VCs with lower levels of risk aversion can profitably fund riskier ventures.

Performance and financing strategies of female and male entrepreneurs in the Republic of Serbia

2017 ◽  
Vol 9 (2) ◽  
pp. 136-156 ◽  
Author(s):  
Danijela Stošic Panić
Keyword(s):  
Gender Differences ◽  
Gender Gap ◽  
Statistical Significance ◽  
Entrepreneurial Activity ◽  
Categorical Variables ◽  
Female Entrepreneurs ◽  
Content Type ◽  
Net Profit ◽  
The Republic ◽  
The Relationship

Purpose The paper examines gender differences in the performance and financing strategies of female and male entrepreneurs in the Republic of Serbia. The aim of this study is to explore the gender dimension – a much under-researched aspect of entrepreneurship in the Republic of Serbia – and to link the findings with those of other environments. Design/methodology/approach To explore gender-based differences in entrepreneurial activity, a random sample of 327 units was drawn from the Serbian Business Registers Agency’s Register of Companies. In total, 101 completed questionnaires were received. The chi-square test of association was used to assess the relationship between two categorical variables, while the non-parametric Mann–Whitney U test was used to assess the statistical importance of the differences between groups of female and male entrepreneurs. The relationship between the performance and different sources of financing was assessed by multiple regression analysis. Findings The results confirm the existence of a gender gap in the net profit, employment growth rate, return on assets (ROA) and in use of various types of alternative financing sources. The evidence shows that those male entrepreneurs who use personal funds achieve lower levels of net profit and ROA compared to those who use internal business sources. Lower ROA is also achieved by those male entrepreneurs who use alternative sources of financing, relative to those who do not use these sources. Female entrepreneurs who applied for bank loans realized higher net profit value compared to those who did not apply for a loan. Moreover, female entrepreneurs who use some kind of state-supported funding achieve higher ROA than those who do not. Other gender differences found regarding the various aspects of the financing practices lacked statistical significance. Originality/value Although the generalizability of part of the findings is weakened due to the lack of statistical significance, most of the expected gender differences were found to exist at the sample level. This encourages further studies of similarities and differences between female and male entrepreneurs’ financing strategies and their impact on business performance. This is particularly important for the environments in which the gender aspect of entrepreneurial activity is under-researched.

scholarly journals Lending Conditions and Marketing Strategies Of Financial Institutions in Kosovo to Support Access to Finance for Women Entrepreneurs

2020 ◽  
Vol 3 (02) ◽  
pp. 111-120
Author(s):  
Ajtene Avdullahi ◽  
Vjosa Fejza Ademi
Keyword(s):  
Financial Institutions ◽  
Women Entrepreneurs ◽  
Comparative Method ◽  
Secondary Data ◽  
Marketing Strategies ◽  
Research Papers ◽  
Access To Finance ◽  
Female Entrepreneurship ◽  
Female Entrepreneurs ◽  
Promotional Strategies

Purpose: The main purpose of this paper is to investigate the effort of financial institutions that support female entrepreneurship in a developing economy as well as the marketing strategies that those financial institutions utilize to increase the awareness of the female entrepreneurs concerning their preferential lending conditions and terms. Design/methodology/approach: For our research purpose the secondary data are used such as research papers, books and reports. The comparative method is used to compare the financial institutions lending conditions as well as the marketing and promotional strategies of those institutions. Findings: Access to finance presents one of the main barriers for female entrepreneurs in developing countries. Our results indicate that not so many financial institutions are constantly offering preferential lending conditions and terms for female-owned enterprises. Practical implications: We propose that financial institutions need to increase the number of loans and credit packages that support women's entrepreneurship and to create and promote much more marketing plans and strategies for women financial support packages from banks, to raise awareness of women entrepreneurs regarding the preferential lending conditions and special offers. Paper type: Research paper

scholarly journals Gender stereotypes in equity crowdfunding: the effect of gender bias on the interpretation of quality signals

2021 ◽  
Author(s):  
Simon Kleinert ◽  
Kazem Mochkabadi
Keyword(s):  
Gender Stereotypes ◽  
Media Coverage ◽  
Early Stage ◽  
Third Party ◽  
Role Congruity Theory ◽  
Female Entrepreneurs ◽  
Role Congruity ◽  
Equity Crowdfunding ◽  
Quality Signals ◽  
Technology Ventures

AbstractEquity crowdfunding has the potential to democratize entrepreneurial finance and provide female entrepreneurs with new and equal access to early-stage financing. In this paper, we present first empirical evidence on gender stereotypes in the context of technology ventures in equity crowdfunding. Drawing on signaling and gender role congruity theory, we hypothesize that quality signals have different effects depending on whether they are sent by male or female entrepreneurs. Results taken from a sample of 263 equity crowdfunding campaigns run by technology ventures confirm our hypotheses. In line with gender stereotypes, management experience is beneficial for male entrepreneurs but detrimental for female entrepreneurs. Interestingly, media coverage as a third-party signal has the oppositive effect, being more effective for female entrepreneurs.

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