Even though women face an uphill battle when pitching to investors, telling a compelling story to potential investors can often give them an edge in crowdfunding. Read on for the full story from Fast Company.
fastcompany.com – From glass ceilings to wage gaps, women in the workforce are often at a disadvantage. For female entrepreneurs, the challenges are sometimes even greater. But recent research has uncovered something that is working in women founders’ favor: storytelling on crowdfunding platforms.
Even though , an MIT study found that when women pitched investors for funding, they were less likely to score than a man delivering the exact same pitch. If you’re a mother or a woman of color, hurdles from biased thinking to lack of networks make it even harder to get funding.
Crowdfunding aimed to level the playing field for startups. Industry analysis from Massolution, a research firm specializing in crowdfunding, estimated that global crowdfunding raised over $34 billion in 2015, making it an increasingly popular alternative to venture capital and angel investing.
Platforms such as Indiegogo and Kickstarter eliminated the need for pitch presentations and their potential for unconscious bias. A study from NYU and Wharton revealed that women tended to support each other in greater numbers in crowdfunding. Women-only teams had a 40% better chance of meeting fundraising goals, while in tech, the success rate for women-led Kickstarter projects was 65% as opposed to just 35% for men.