In a recent study conducted by PwC, 450,000 seed crowdfunding campaigns were analyzed across the globe. The findings showed that women-led campaigns reached their funding target more often than male-led campaigns: in fact, 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.
Seed crowdfunding: the use of ‘rewards based’ crowdfunding platforms to fund the creation, launch or development of new businesses, products and services where backers pay upfront for a product, service or project
In Canada, while women still achieve greater crowdfunding success when they finance through this channel, they struggle to receive even half the number of backers compared to male-led campaigns. Further, the average pledge amount received falls short of their male counterparts by more than 20%.
Despite this, significant opportunity still remains for women to become more active and represented in crowdfunding and to be more ambitious when establishing their finance raising goals.
Investing in or supporting women-led businesses has the potential to deliver some of the highest-returns – for investors and for societies. As female entrepreneurs and leaders, there’s a great opportunity to identify, quantify and remove the grey-suit-factor, which remains at the root of this inequality in female founders’ access to finance.
So what can you do to help women close the funding gap?
- Realize your potential, fuel your confidence and understand the opportunities that seed crowdfunding presents you;
- Be confident to use seed crowdfunding, as a tool of choice, to secure positive cash flow and market validation;
- Seek and participate in women-focused incubators, accelerators and platforms;
- 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.
For those of you unfamiliar with the world of crowdfunding, explore the opportunities it presents you to become a mini-VC and, in particular, the opportunity for women to champion women. It’s a great opportunity for already successful entrepreneurs to step into a role which was formerly exclusive to investors.
Read the full report to learn more about how seed crowdfunding is unleashing female entrepreneurial potential.