<p>Most empirical evidence focuses on commercial startups seeking financing from equity/debt investors to suggest that male-led startups raise more financing than female-led startups due to investor biases. We extend this inquiry to explore whether and how entrepreneur gender impacts access to financing from equity, debt and philanthropy investors in the context of social startups. Drawing on gender role congruity theory and signaling theory and testing our hypotheses on a sample of 9,420 social startups that applied to 393 social impact accelerators globally, we find that without an accelerator endorsement, female-led startups raise less equity and debt financing, but more philanthropy financing as compared to male-led startups. However, with an accelerator endorsement, the financing advantages female-led social startups have in philanthropy financing are eliminated and contrary to our hypotheses, their disadvantages in equity and debt financing are increased.</p>

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The liability of gender: the effect of gender stereotypes on financing gaps for social startups

  • Romi Kher,
  • Scott L. Newbert,
  • Shu Yang

摘要

Most empirical evidence focuses on commercial startups seeking financing from equity/debt investors to suggest that male-led startups raise more financing than female-led startups due to investor biases. We extend this inquiry to explore whether and how entrepreneur gender impacts access to financing from equity, debt and philanthropy investors in the context of social startups. Drawing on gender role congruity theory and signaling theory and testing our hypotheses on a sample of 9,420 social startups that applied to 393 social impact accelerators globally, we find that without an accelerator endorsement, female-led startups raise less equity and debt financing, but more philanthropy financing as compared to male-led startups. However, with an accelerator endorsement, the financing advantages female-led social startups have in philanthropy financing are eliminated and contrary to our hypotheses, their disadvantages in equity and debt financing are increased.