Frustrated female entrepreneurs struggling to get funding should set up a Kickstarter or Indiegogo page.
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. And the women were more likely than men to have their business ideas funded.
n fact, a children’s book about “rebel girls” from Timbuktu Labs, which was started by two women, became the fastest-funded publishing project in Kickstarter history last year, topping $100,000 in just three hours. And Elin Elkehag first successfully funded Stilla Motion, a small anti-theft device that you put in your purse, backpack or briefcase that sends an alert to your phone if the bag moves, through Indiegogo.
Next, the researchers investigated why female-led startups were more successful on the crowdfunding platform. The team created mock crowdfunding pitches and videos, which they showed to 73 amateur investors based in the eastern U.S. They also used psychological tests to determine each investor’s perception of how trustworthy they found each entrepreneur. The entrepreneurs who were seen as the most trustworthy received the most funding — and they were predominantly women.
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