While female-led ventures have long struggled to get financial backing from banks and investors (who are predominantly male), a new Indiana University report finds that women actually have an easier time getting money on crowdfunding platforms than men do.
The university’s Kelley School of Business analyzed three years of Kickstarter data, examining the entrepreneurs’ gender, financial backing received and funding success in a sample of 416 projects. They discovered that women were more likely than men to have their business ideas funded.
This backs a Pricewaterhouse Coopers report last year that found that women-led crowdfunding campaigns are 32% more successful than male-led campaigns.
Previous research in the venture capital setting has shown that typically investors will invest in men because they view them as more competent. In crowdfunding, the perception of competence is less important because of the early stage of projects. What is more important is whether funders trust the entrepreneur. And, in the study, women had the advantage of being viewed as more trustworthy than men.