Employment before Entrepreneurship and Gender Inequality: Evidence from Venture Capital Financing

Xiaoning (Gavin) Wang, Operations, Information and Decisions, The Wharton School, and Lynn Wu, Operations, Information and Decisions, The Wharton School

Abstract: Venture capital is the key to fostering and supporting innovation. However, there is huge gender bias in venture financing market. In 2017, only 2.2% of total venture funding went to female-founded firms in US, despite the fact that female entrepreneurs own 38% of total business in the country. Previous literature has shown that such gender bias could be alleviated through providing better information and improving female entrepreneurs’ social capital. Prior working experience before entrepreneurship could help in both ways. Our research project plans to understand how previous working experience may benefit female entrepreneurs in venture financing market, and provide managerial advice for future entrepreneurs.