Seed crowdfunding campaigns led by women consistently outperform those led by men. This is one of the main findings of Women unbound. Unleashing female entrepreneurial
potential a research report conducted by PwC and The Crowdfunding Center.
The analysis of over 450,000 seed crowdfunding campaigns across 205 countries and from 9 of the largest crowdfunding platforms identified a powerful gender dynamic as campaigns led by women across the world in 2015 and 2016 were 32% more successful than those led by men across a wide range of sectors, geography and cultures.
“Crowdfunding is starting to penetrate the traditional systems that used to use the old way of financing. VC is now using us as a way to get a hold of interesting ideas. It’s making their job easier.”
Danae Ringelmann, Co-founder of Indiegogo
This is also reflected by the fact that on average each individual backer contributes $87 to women and $83 to men.
Additional findings include that in territories with the largest volumes of seed crowdfunding, the UK and the US, 20% of male-led campaigns reached their targets. Yet, female-led campaigns outperformed, with 24% of women in the US and 26% of women in the UK successfully reaching their campaign funding target, the report shows.
This trend continues in territories where seed crowdfunding is not yet as wide-scale or as successful. For example, 11% of female-led campaigns in Africa were successful compared with 3% of male, and 10% of female-led campaigns compared to 4% of male-led in E7 countries (China, India, Brazil, Mexico, Russia, Indonesia and Turkey), the study confirms.
It’s time to adjust our assumptions and so our perception. These findings pose a serious challenge to current entrepreneurial and business norms, and especially decision making, pointing to a deep-rooted and destructive bias, albeit unconscious.
Manoj Kashyap, PwC Global FinTech Leader, says:
It is extremely positive to see that the growth and global reach of seed crowdfunding presents several major opportunities, each with the potential for major social and economic impact. Including the understanding and acceptance that seed crowdfunding is now a well-established environment through which women can thrive.
Find out more here.