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Entries in crowdfunding (1)


Study: When Women Crowdfund, They Do It Better Than Men

Crowdfunding has become a popular means of fundraising in recent years, and it's easy to see why. It's convenient, especially for those who are both generous and tech-savvy; around 17% of crowdfunding donations are made on mobile devices, with others being given via laptop, personal computer, tablet, and other internet-accessible devices. It's also a highly shareable method, allowing friends, relatives, and perfect strangers to learn more about a cause and give money to support it. Some campaigns even go viral. But although women are less likely to embrace this means of fundraising than men, a recent study has found that when women do go the crowdfunding route for their personal and business projects, they're a lot better at it than their male counterparts.

According to data from The Crowdfunding Center and PwC, a consulting firm, crowdfunding campaigns led by women were 32% more successful at reaching their targets than those led by men. Not only were they more likely to reach the targets they had set, but they also received more money per backer, on average: women attracted $87 per funder, while men received $83 per funder.

Interestingly, the study suggests that one reason for female success in this arena may be the fact that women are more likely to donate via seed crowdfunding than by other means of fundraising for projects (like venture capital). Women also seem to be a bit more realistic about their campaign goals; they tend to set lower targets, so they're more likely to reach them.

That said, men are more likely to use this tactic than women in the first place. In the technological sector, there are nine male-led campaigns for every female-led campaign; in digital tech, the ratio is 3:1. Men are also more likely to lead the highest level campaigns. Of campaigns that raised over $1 million, 89% were led by men and only 11% were led by women.

But in all geographic locations surveyed, women still outperformed men by a significant margin. This was found to be true even in the U.S. and the UK, the two countries with the highest campaign volumes. When women embrace crowdfunding for their ventures, it's clear that they dominate.

Co-founder and chief executive of The Crowdfunding Center, Barry E. James, said of the results in a statement:

"Who could have expected that when the middle-men are removed from the equation, and women and men entrepreneurs get equal and direct access to the market, it would turn out that women would, immediately and decisively, outperform the men, across the board? It's time to readjust not just our expectation and perceptions but our attitudes, institutions, behaviors -- and the way we make decisions."

The study, which analyzed 450,000 different crowdfunding campaigns, highlights the need for women to embrace this method even more for their ventures. While they lead the way when they decide to raise funds in this manner, they still don't attempt it as often as men do -- and they set lower goals. For businesses that need seed money, crowdfunding may be an option that's well worth looking into.