There is an enormous gender gap in venture capital funding in the United States. Female entrepreneurs receive only about 2% of all venture funding, despite owning 38% of the businesses in the country. The prevailing hope among academics, policy makers, and practitioners alike has been that this gap will narrow as more women become venture capitalists. However, homophily does not seem to be the only culprit behind the funding gap. Over the past several years, the U.S. has seen an increase in the number of female venture capitalists (from 3% of all VCs in 2014 to an estimated 7% today), but the funding gap has only widened. This research offers new evidence as to why female entrepreneurs continue to receive less funding than their male counterparts.
Harvard Business Review.. June 27, 2017.