Summary of The Real Reason Female Entrepreneurs Get Less Funding

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The Real Reason Female Entrepreneurs Get Less Funding summary
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  • Scientific
  • Eye Opening

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Would you rather play a game in which your team had to defend itself constantly from persistent attacks or a game in which your team is focused on winning and taking home the trophy? When it comes to securing funding, venture capitalists tend to promote male founders to the latter game but relegate female start-up founders to the former. Dana Kanze, an assistant professor at the London School of Business and a former entrepreneur, shares her insights on how female business founders can escape the perpetual game of defense and take home a bigger slice of the funding pie.

About the Speaker

Dana Kanze, PhD, is an assistant professor of organizational behavior at the London School of Business.

 

Summary

Female entrepreneurs secure just 2% of venture funding despite founding 38% of all businesses in the United States.

Why do female start-up founders earn a much smaller piece of the funding pie? Subtle differences in the ways investors interact with male and female entrepreneurs account for the inequality. 

When Dana Kanze was the CEO of her own start-up, she noticed that when she pitched her business to potential investors, she had to field a different variety of questions than her male co-founder. While venture capitalists constantly had Kanze defend her company’s strategy and position, they persistently gave her male counterpart a platform to laud the start-up’s potential. 

A “promotion” focus emphasizes possible future progress and achievements while a “prevention” focus accentuates possible future losses and the need for security.

Years later, when Kanze left her company to pursue a PhD, she had an opportunity to study this phenomenon. She discovered Columbia...


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