Red, Blue or Purple? Angel Investors' Political Ideology and Women Entrepreneurs

Academic Article


  • Entrepreneurship research has well documented the gender inequality issue in obtaining external funding. To better understand this issue, we explore the relationship between the personal value of angel investors, who are the major source of this risk capital for nascent entrepreneurs, and the likelihood of their investment in women entrepreneurs. Specifically, we focus on an angel’s political ideology on the conservatism-liberalism dimension that represents an individuals’ core belief systems concerning appropriate societal goals and the means of achieving those goals. We contend that liberal angel investors tend to overcome gender bias and reject gender inequality and thus are more likely to invest in women entrepreneurs. We further explore whether angel investors’ ideology effect on investments is influenced by the industry dynamism in which the new ventures operate. We tested our hypotheses by examining 7,964 angel investments from 2010 to 2019. Our results have both theoretical and practical implications for women entrepreneurs and their access to high risk start-up capital.
  • Authors

  • Lien, Wan-Chen
  • Sohl, Jeffrey
  • Chen, Jianhong
  • Status

    Has Subject Area


  • angel investors
  • gender inequality
  • political ideology
  • women entrepreneurs