Study: Female founders find success in crowdfunding
BY LIFT IOWA STAFF | @LiftIOWA
Crowdfunding might be the answer for women entrepreneurs seeking funding.
A study from New York University and the Wharton School found that women-only teams on crowdfunding platforms stood a 40 percent greater chance of getting the amount of funding they sought, according to a Fast Company article.
An MIT study found that when women pitched investors for funding, they were less likely to score than a man delivering the exact same pitch. If you’re a mother or a woman of color, hurdles from biased thinking to lack of networks make it even harder to get funding, Fast Company reported.
Crowdfunding, however, levels the playing field for startups. Platforms such as Indiegogo and Kickstarter eliminate the need for pitch presentations and their potential for unconscious bias. In fact, the NYU/Wharton study found women-only teams had a 40 percent better chance of meeting fundraising goals, while in tech, the success rate for women-led Kickstarter projects was 65 percent as opposed to just 35 percent for men.
Why the success? It could be due in part to better written pitches that create an emotional connection with potential investors.
Read more about the study at FastCompany.com.
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