Does Gender Matter in Choosing Startup Investors? Evidence from a National Field Experiment

Authors:

Ofir Gefen, David Reeb, and Johan Sulaeman

National University of Singapore

Abstract

We investigate the veracity of the frequent allegation that male founders marginalize female investors, often supported by female investors' anecdotal reports. Using a randomized field experiment framework, we examine the existence, intensity, and distribution of gender-based choices in startup culture. Leveraging the rapid increase in outbound origination, we perform a national field experiment involving 40,572 startups, sending unsolicited emails from fictitious male and female investors. Emails sent by male investors are substantially more likely to be read by startups than emails from female investors. Startups are also more likely to visit the male investor's website and subsequently attempt to make contact. This pattern is more pronounced with angel investors than with VC investors. Disclosing professional certifications increases a male investor's email's likelihood of being read but reduces the corresponding female investor's chances. A second experiment, involving a separate sample of 4,836 recently incorporated startups, reveals similar gender-based choices