Still a Man's World? Second Generation Gender Bias in External Equity Term Sheet Negotiations

Swartz, Ethné; Amatucci, Frances M.; Coleman, Susan

doi:10.1142/s1084946716500151

Cited by 6 publications

(7 citation statements)

References 31 publications

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“…Research on entrepreneurial negotiations conducted in the absence of VC participation has explored several topics, such as gender (Amatucci and Sohl, 2004; Amatucci and Swartz, 2011; Boulton et al. , 2019; Swartz et al. , 2016), persuasive behavior (Artinger et al.…”

Section: Conceptual Framework and Literature Reviewmentioning

confidence: 99%

“…VCs facilitate entrepreneurship by funding business activities and actively managing their venture capital investments (Gompers and Lerner, 2004;Sahlman, 1990). Therefore, it is essential for entrepreneurs to develop proficiency in term sheets and contract negotiation (Amatucci and Swartz, 2011;Swartz et al, 2016), as VCs are typically experienced and skilled dealmakers and negotiators (Lehtonen and Lahti, 2009) and entrepreneurs can either gain or lose considerable sums of money in these negotiations (Lehtonen and Lahti, 2009). Hence, regarding venture capital negotiations, the entrepreneurs' ability to negotiate is indispensable for the venture's success (Artinger et al, 2015;Dinnar and Susskind, 2019).…”

Section: Introductionmentioning

confidence: 99%

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Differences between habitual and novice entrepreneurs in funding negotiations

Glade,

Kesting,

Smolinski

et al. 2023

IJEBR

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PurposeNegotiations with venture capitalists (VCs) play a crucial role in the entrepreneurial financing process. Habitual entrepreneurs are generally able to secure more venture capital funding and on better deal terms than novices. This study investigates the disparities in negotiation competencies between habitual and novice entrepreneurs during VC funding negotiations.Design/methodology/approachThis study employed a qualitative approach to investigate the variation in negotiation competencies between habitual and novice entrepreneurs, utilizing the negotiation competency model (NCM). The data analysis and interpretation adopted an inductive concept development approach. A total of 21 semi-structured interviews were conducted with seasoned VCs located in Europe, all of whom had actively engaged in funding negotiations with both habitual and novice entrepreneurs.FindingsThe findings revealed substantial disparities between novice and habitual entrepreneurs in VC negotiations. Although not all competencies of the NCM exhibited variances, the results indicate three primary dimensions contributing to these differences: expertise, reputation, and negotiation competence.Originality/valueThis study is groundbreaking as it represents one of the earliest empirical investigations into the entrepreneurial negotiation competencies within VC negotiations. The findings endeavor to narrow the gap between novice and habitual entrepreneurs in VC negotiations by pinpointing the distinct variations between these two groups, which hold significant practical implications. Furthermore, this study expands the conceptual framework of the NCM by identifying supplementary competencies within the realm of VC negotiations.

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Section: Conceptual Framework and Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Differences between habitual and novice entrepreneurs in funding negotiations

Glade,

Kesting,

Smolinski

et al. 2023

IJEBR

View full text Add to dashboard Cite

show abstract

“…We sourced secondary data to offer information on the context of the women entrepreneurs in the study. Funding is a key constraint that women entrepreneurs face (Swartz et al, 2016), and risk capital investment during early phases helps digital enterprises to grow (Cavallo et al, 2019). One data source on risk capital investment in entrepreneurial start-ups is Crunchbase, which academic researchers are increasingly adopting (Ter Wal et al, 2016) as a data source to augment government statistics.…”

Section: Technology-oriented Firmsmentioning

confidence: 99%

“…We sourced secondary data to offer information on the context of the women entrepreneurs in the study. Funding is a key constraint that women entrepreneurs face (Swartz et al. , 2016), and risk capital investment during early phases helps digital enterprises to grow (Cavallo et al.…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Women entrepreneurs’ opportunity identification of digital platform start-ups: emerging evidence from South Africa

Swartz

Scheepers

Toefy

2022

IJGE

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PurposeCognitive drivers of opportunity identification and development are important in entrepreneurship. This study examines antecedents of opportunity development among women founders of digital platform start-ups, defined as technology-mediated sites that facilitate user interactions, processing of transactions or other innovative practices. The opportunity identification and development literature framed our exploration of drivers into digital entrepreneurship among women in a middle-income economy, an area under-represented in prior research.Design/methodology/approachThis research uses in-depth interview data with women founders of five digital platform start-ups in South Africa. The authors supplemented primary interviews with secondary data from a global big data site to provide context for how investors are funding women-owned start-ups in the country.FindingsEntrepreneurs’ heightened alertness to opportunity developed from a confluence of factors such as personal values, impatience at the slow pace of change in post-Apartheid South Africa, corporate ennui and building for-profit business models driven by social purpose. Respondents had multiple identities, including gender, culture and generation that influenced their development as entrepreneurs and their adoption of digital platform strategy for start-up ventures.Research limitations/implications Multiple factors influence women entrepreneurs during the opportunity identification and development process as they enact the creation of digital platform start-ups. The authors recommend additional research linking opportunity identification and development to gender in emerging markets.Practical implicationsSouth Africa is witnessing the emergence of women-owned digital platform start-ups that attract risk capital investment. These entrepreneurs are university educated and use prior corporate experience to create growth-oriented companies that government should support.Originality/valueThe study contributes to opportunity identification theory building based on context, specifically how the concepts and strategies can inform new models that include women entrepreneurs.

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“…Bias tends to favor one's in-group (e.g., family, friends, local culture, etc.) 7 . Bias is malleable and can be changed over time…”

Section: Appendix B: Male Condition-executive Summary For Excelleratementioning

confidence: 99%

Gender Bias and Venture Funding: Discussing Bias in the Entrepreneurship Classroom

Michaelis

Pollack

Mulvey

et al. 2019

Entrepreneurship Education and Pedagogy

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We report on the findings from an in-class experiment that represents a learning innovation which can enable classroom-based conversations about bias in the domain of entrepreneurship. More specifically, the present learning innovation explores gender bias in venture funding with regard to entrepreneurship. In an introduction to entrepreneurship class, we randomly assigned students to one of the three experimental conditions—students evaluated an executive summary for a venture either written by a woman, or a man, or one in which the gender was neutral (i.e., the control group). Students acted as if they were considering an investment and reported whether, for example, the executive summary was well written as well as how much equity they would want in the venture as a potential investor. Overall, these results provide evidence consistent with the inference that the students sampled in this study did not use gender as a decision-making heuristic when evaluating entrepreneurial opportunities. We discuss the results of our experiment and describe (a) how to replicate this activity, (b) how to discuss this in the classroom, and (c) how to adapt this activity to explore other types of bias (e.g., race, ethnicity, weight-based, etc.).

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Still a Man's World? Second Generation Gender Bias in External Equity Term Sheet Negotiations

Cited by 6 publications

References 31 publications

Differences between habitual and novice entrepreneurs in funding negotiations

Differences between habitual and novice entrepreneurs in funding negotiations

Women entrepreneurs’ opportunity identification of digital platform start-ups: emerging evidence from South Africa

Gender Bias and Venture Funding: Discussing Bias in the Entrepreneurship Classroom

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