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korean management review - Vol. 53 , No. 1
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korean management review - Vol. 53, No. 1, pp. 113-136
Abbreviation: kmr
ISSN: 1226-1874 (Print)
Print publication date 28 Feb 2024
Received 14 Aug 2023 Revised 29 Nov 2023 Accepted 01 Dec 2023
DOI: https://doi.org/10.17287/kmr.2024.53.1.113

How Do Female-Led Firms Successfully Receive Follow-Up Investments? A Focus on the Moderating Effects of Investors’ Experiences
Minsun Lee ; Juhee Kim ; Sun-Young Kim ; Daeil Nam
(First Author) Korea Technology and Information Promotion Agency for SMEs (lms@tipa.or.kr)
(Co-Author) Dongduk Women's University/Arts and Cultural Management (juhee421@gmail.com))
(Co-Author) Korean Venture Investment Corporation (sykim07@kvic.or.kr)
(Corresponding Author) Korea University Business School (email)

어떤 여성 기업이 후속 투자 유치에 성공하는가? 투자자 경험의 조절 효과를 중심으로

Copyright 2024 THE KOREAN ACADEMIC SOCIETY OF BUSINESS ADMINISTRATION
This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0, which permits unrestricted, distribution, and reproduction in any medium, provided the original work is properly cited.
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Abstract

In this study, we examined how an investor’s expertise can moderate female-led enterprises' challenges when achieving follow-up investments. Prior research indicates that female entrepreneurs often face a disadvantageous position within the investment ecosystem compared to their male counterparts. We investigated whether the professional competence of investors, rooted in their diverse experiences, could help alleviate the challenge of female entrepreneurs when they attempt to achieve follow-up investment. This study classified investors' competencies based on their experiences at the company level, industry level, and multinational level. With these experiences, we examined the moderating effects of these experiences on the difficulties faced by female businesses. We conducted an empirical analysis using data from 4,663 companies that secured investment between 2005 and 2022. Our findings reveal that female businesses indeed face difficulties in securing follow-up investments. However, these difficulties are less pronounced when investors have prior investment experience in the same industry and foreign markets. To summarize, this research highlights the investment hurdles female entrepreneurs face and suggests that investors, armed with a broad range of experiences, can play a pivotal role in aiding the success of female entrepreneurs.

Keywords: female entrepreneur, investor’s experience, fund of venture fund, general partner
Acknowledgments

The first author and two co-authors contributed equally to the writing of the paper. This research is partially supported by Korea University Research Grant.

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∙ The author Minsun Lee is serving as an expert advisor at the Korea Technology and Information Promotion Agency for SMEs. She received the bachelor's degree in computer engineering from Ewha Womans University and the master's degree in computer engineering from the University of Florida, USA. Professionally, she has imparted her expertise as a software engineer within the Mobile Business Division of LG Electronics. Later, she obtained a PhD in Business Administration from Korea University Business School. Her main research areas include entrepreneurship and the venture ecosystem, growth strategies for venture businesses, and business models.

∙ The author Juhee Kim is Professor of of Arts and Cultural Management at [Arts and Cultural Management department/Dongduk Women's University in South Korea. Her research centers on innovation, international entrepreneurship of startups with a focus on investment climate measure, institutional environment, business model, and platforms. She has published her research in refereed journals such as International Business Review.

∙ The author Sun-Yong Kim is currently a research fellow at the Korea Venture Investment Corporation. She majored in management information and business administration at Kwangwoon University and received her master's and doctorate in business administration from the same university. After completing his Ph.D., she conducted research on industrial economics at the Seoul Institute for Local Government Policy Research Center and related research at the Small Business Policy Research Center of the Seoul Credit Guarantee Foundation. Her research interests include venture investment ecosystems, technological innovation and management strategies of SMEs, and entrepreneurship.

∙ This author Dae-Il Nam is a professor at the Korea University Business School. He teaches management strategy and entrepreneurship. He was the inaugural director of the Seung Myung Ho Center for Entrepreneurship Education. His research interests include business models, startups, IPOs, and innovation in large organizations. He has written several books including 101 Business Model Stories. He also received the Maeil Business Economist Award and the Humax Emerging Scholar Award.

 
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