Abstract
We examine whether and when female representation in decision-making groups of venture capital firms affects the firms' decision to fund woman-led businesses. By developing an intra- and inter-group categorization framework for group decision-making, we argue that, in the male-dominated venture capital industry, decision-making groups with higher female representation are less likely to fund woman-led businesses. However, this negative effect is mitigated when the decision-making group has more politically neutral members or when members have more shared prior employment affiliations. Using a longitudinal panel dataset of funding decisions by 151 U.S.-based venture capital firms, the empirical analyses support our theoretical predictions. We also enriched and complemented our empirical findings with qualitative evidence.
Original language | English |
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Article number | 106368 |
Journal | Journal of Business Venturing |
Volume | 39 |
Issue number | 1 |
DOIs | |
Publication status | Published - Jan 2024 |
Keywords
- Decision-making group
- Female representation
- Funding of woman-led businesses
- Gender equality
- Qualitative analysis
- Social categorization
- Venture capital
ASJC Scopus subject areas
- Business and International Management
- Management of Technology and Innovation