Academic Journal
The Effect of Gender Diversity on Angel Group Investment
"Entrepreneurship, Theory and Practice" 25 pages 2011
Journal Details
Entrepreneurship, Theory and Practice, 2011 Vol. 35 Issue 4 Pages 709-733
Finance
Journal Article, Academic Journal
We examine the impact that gender diversity has on angel group investment behavior for a sample of 183 group-years between 2000 and 2006. Our evidence suggests that gender diversity is a significant predictor of group investment behavior, and that the proportion of women angels in the group has a negative though nonlinear effect on investment likelihood. These data are most consistent with a situational interpretation that women invest differently when they are in the small minority compared with other situations. These results have important implications for the availability of funds for women entrepreneurs and call for greater participation of women investors in the angel marketplace.