Women are better at crowdfunding than men
A PWC report based on two years of global seed crowdfunding data finds female entrepreneurs 32% more likely to reach their funding targets
When it comes to crowdfunding, female entrepreneurs are outperforming men all over the world – according to a new report from PWC.
Created in collaboration with The Crowdfunding Centre, The Women Unbound report studied 450,000 seed-crowdfunding campaigns over the last two years from nine of the biggest crowdfunding platforms globally.
It found that crowdfunding campaigns led by a female founder(s) were 32% more successful than those led by men, regardless of sector, geography and culture.
In the UK – one of the territories with the largest volumes of seed crowdfunding – 20% of campaigns led by male entrepreneurs reached their funding targets.
However, campaigns ran by female entrepreneurs outperformed with 26% of female founders in the UK successfully hitting their target, even though more crowdfunding campaigns were run by men – 13,053 compared to 6,013 ran by women.
The report also found that female-led crowdfunding campaigns attract higher average pledges from armchair investors; on average in the UK each individual backer contributes $78.19 to women and $69.05 to men.
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Female founders continue to reign supreme even when crowdfunding for businesses in industries more dominated by males.
In the tech sector, nine out of 10 crowdfunding campaigns in 2015 and 2016 were run by male founders yet campaigns ran by female founders are more successful; 13% compared to 10%.
PWC has asserted that the report shows that women are better at crowdfunding than men. In light of the findings, it has called on “governments, funders, business advisors and businesses of all sizes to seize this opportunity to identify, quantify and remove the grey-suit-factor, which remains at the root of this historic inequality in female founders’ access to finance.”
What female entrepreneurs can learn from the report
Last month, Startups.co.uk explored the funding gap for women in business and highlighted a number of inspiring female start-ups founders challenging the status quo – having collectively raised over £30m.
We encourage you to read this feature series and be inspired, and learn from, their stories. As PWC suggests in its ‘actions for female entrepreneurs’:
“Men show more positive perceptions about opportunities and their own capabilities, as well as lower fear of failure. Women should be inspired by the positive findings of this research to realise their potential and fuel their confidence and understand the opportunities that seed crowdfunding presents them.”
Alongside reading our series, what other actions can you take if you’re a woman in business seeking funding? PWC recommends you should:
- Be confident to use seed crowdfunding, as a tool of choice, to secure positive cashflow and market validation.
- Seek and participate in women-focused incubators, accelerators and platforms such as AllBright and The Crowdfunding Centre’s business funding accelerator for women.
- Start or continue backing crowdfunded projects: some of the most crucial lessons about how to run a successful crowdfunding campaign and launch a thriving business come from being a supporter of crowdfunded projects.