Gender diversity effects on investment decisions: a study of Shark Tank

Abstract

Purpose

This paper investigates gender disparity in investment decisions within the popular American TV show Shark Tank.

Design/methodology/approach

The research uses a comprehensive dataset of 925 pitches from 14 seasons and 316 episodes, covering August 2009 to May 2023.

Findings

Contrary to previous studies, the findings indicate that female entrepreneurs do n'ot face discrimination in terms of their pitching success rates, regardless of their industry affiliation. However, the authors did observe that female entrepreneurs tend to receive lower valuations, both self-assessed and in final deals. This suggests a self-imposed gender gap in venture capital and angel investing, likely stemming from lower entrepreneurial aspirations among women.

Originality/value

To tackle this issue, the authors propose promoting female venture capital by increasing the representation of female entrepreneurs and business angels on Shark Tank. Such role models can inspire aspiring women in these fields. Additionally, the authors believe that mixed-gender founder teams, comprising both men and women, can play a significant role in developing promising startups with viable business models.

Citation

Hussain, S., Rasheed, A. and Mahmood, M. (2023), "Gender diversity effects on investment decisions: a study of Shark Tank", Kybernetes, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/K-07-2023-1311