A meta-analysis of the gender gap(s) in venture funding: Funder- and entrepreneur-driven perspectives

Using gender homophily and gender socialization as theoretical foundations, the current study takes the position that both funder-driven (supply-side) and entrepreneur-driven (demand-side) processes perpetuate the gender gap in venture funding. Using this positional anchor, I performed a meta-analysis on gender-funding associations. The results show that gender-funding associations are different across funding contexts, which is consistent with what gender homophily and a funder-driven perspective might suggest. However, the nature of the difference depends on whether the outcome is funding amount or funding success. In addition, business size and industry sector were found to fully mediate the relation between entrepreneur gender and funding needed. This finding is consistent with what gender socialization and an entrepreneur-driven perspective might suggest. The mediation results ultimately suggest that female entrepreneurs need less funding for their ventures, which in turn results in less funding amounts but greater funding success. As such, there is one gender gap to the disadvantage of female entrepreneurs (funding amount) and another gender gap to the advantage of female entrepreneurs (funding success). Together, the perspectives and findings presented in this paper provide insights for both research and practice on the gender gap(s) in venture funding.