Women investors stifled by fear of negative stereotypes, unless they work with other women
Female angel investors afraid of being perceived as a negative stereotype are less involved in their job roles, finds new research from emlyon business school. However, when women are part of an all-female company, they perform much better.
However, the research did find that the greater experience female investors have in investing, the more likely they are to thrive in a male-dominated space.
These findings come from research by Peter Wirtz, Dean for Faculty and Research and Professor of Strategy and Organization at emlyon business school, alongside his colleagues, Laurence Cohen, from iaelyon School of Management, and Cristiano Bellavitis, from Syracuse University.
The researchers wanted to understand how stereotype threat theory – the fear of being perceived as a negative stereotype – affected women in investment in both male-dominated groups, as well as female-only groups.
The researchers found that when female investors were in male-dominated spaces, they made less investments than men and were less involved in their investment activities.
However, when women were in female-only spaces, they invested similar amounts to men, and significantly more than women in male dominated industries.
Though, the researchers did find that women's confidence and investment activities increased as their experience in the sector grew, showcasing that as women feel more comfortable in their roles, they are more confident to make investment decisions.
Investment has traditionally been dominated by men, creating barriers for women to feel confident in this space. If we want to invest in a broader range of businesses and unlock untapped potential, women need environments that empower them to succeed. This research shows that all-female groups provide exactly that – fostering confidence, reducing pressure, and enabling women to fully realise their potential as investors.
The findings highlight the importance of creating supportive environments, such as female-only groups, to empower women investors. These spaces not only foster greater participation but also help women build the confidence and experience necessary to thrive in the investment world. Whilst continued efforts to normalise women's presence in angel investing is necessary.
Policymakers and industry leaders should focus on providing targeted angel training and increasing access to diverse deal flows, especially those led by women, to encourage broader participation in angel investing.
Source: Laurence Cohen, Cristiano Bellavitis, Peter Wirtz, Explaining the involvement and investment of women in business angel groups: The impact of organizational context and investment experience, Journal of Corporate Finance, Volume 91, 2025, 102729, ISSN 0929-1199.
If you would like to speak with the researchers, or receive the full research paper, please contact Peter Remon at BlueSky Education – peter@bluesky-pr.com +44 (0) 77 235 228 30.