The Asian Age

Women ven­ture cap­i­tal­ists un­der­per­form men: Study

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San Francisco, Sept. 1: Women ven­ture cap­i­tal­ists un­der­per­form their male coun­ter­parts by some 15 per­cent, ac­cord­ing to a new Har­vard Univer­sity study, but the per­for­mance dif­fer­ences have nar­rowed over time and in firms that em­ploy more than a sin­gle fe­male ven­ture part­ner.

“We find that fe­male ven­ture cap­i­tal­ists sig­nif­i­cantly un­der­per­form their male col­leagues,” wrote Paul Gom­pers, Vladimir Mukharlyam­ov and Yuhai Xuan of Har­vard and Emily Weis­burst of the Univer­sity of Texas at Austin in their study, “Gen­der Ef­fects in Ven­ture Cap­i­tal.”

They blamed the per­for­mance dif­fer­ence in part on a lack of men­tor­ing by male col­leagues. The aca­demics based their study on ven­ture- cap­i­tal in­vest­ments made be­tween 1975 and 2003, rep­re­sent­ing 26,087 invest- ments. Ven­ture in­vest­ments can take years to reach an out­come, mak­ing it dif­fi­cult to in­clude re­cent deals. The au­thors counted as suc­cess­ful the in­vest­ments that led to an ini­tial pub­lic of­fer­ing of the company, or 4,622 IPOs. Only 4.6 per cent of IPOs had a fe­male ven­ture cap­i­tal in­vestor, au­thors said, con­clud­ing that in­vest­ments made by them were 2.1 per cent less likely to go pub­lic.

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