Research Shows Women Excel At Crowdfunding

Finally, it’s becoming easier for women to raise capital for their companies.

Of course, raising money is difficult for anyone but throughout the years it’s proven more difficult for female entrepreneurs to raise capital from venture capitalists and bankers than their male counterparts.

However, the good news today is that women outperform men when raising money for their companies through rewards-based crowdfunding. Meaning their products and services are now hitting the market.

In rewards-based crowdfunding, the backer receives a tangible item as opposed to shares in that company. Plus, the backer no longer has to pay interest on the money raised. Oftem, the item is the product you are trying to raise money to produce. Achieving a successful crowdfunding campaign is shows potential, and makes it easier to raise money from those VC’s and bankers, as well as getting retail distribution deals.

It seems that the major advantage for women here is that they naturally excel at telling stories that resonate with the backers. In fact, Hebrew University found that female entrepreneurs are more likely to reach their funding goal than males raising money through crowdfunding. Berkely-Haas School of Business and the Kellogg School of Management found that women not only outperform men, but they point to women’s use of vivid and inclusive language. Simply, women poses the power to tell compelling stories that connect to investors on an emotional level.

 

Source: Forbes.com

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