Entrepreneurial Teams and the Gender Funding Gap: Do Women Need Male Co-Founders to Raise More?

This study investigates the gender gap in early stage fundraising for entrepreneurial founding teams (EFTs) by analyzing the impact of different gender team configurations on the amount of capital raised during seed or Series A funding rounds among European startups. Our analysis reveals that all-female EFTs raise, on average, three times less capital than comparable all-male and mixed-gender teams. Additionally, mixed-gender teams with a male-majority (or male CEO) raise significantly more funding than those with an equal or female-majority composition (or female CEO). The funding disparities persist regardless of the presence of female or highly educated investors and remain unchanged following the #MeToo movement. Overall, our results suggest that female entrepreneurs may benefit from strategically partnering with male co-founders to overcome funding barriers.