Gender Stereotypes and Entrepreneur Financing

Abstract

I document a significant gender gap in how entrepreneurs obtain early-stage equity financing. Using administrative data on French startup firms, I show that female entrepreneurs are 22% less likely to use financing with external equity or venture capital. Highly skilled and motivated female entrepreneurs whose firms operate in male-dominated sectors are particularly less likely to obtain such financing, whereas the gender gap closes in female-dominated sectors. Moreover, evidence suggests that female-founded startups outperform when provided with VC. Selection into high-growth entrepreneurship does not explain my findings, suggesting that gender stereotypes are the most likely driver of the equity gender gap.

Keywords: Gender gap, venture capital, stereotypes, startups characteristics, self-selection

JEL Classification: G24, G41, J16, L26