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According to bizjournals.com
Women tech entrepreneurs are more successful at raising capital on crowdfunding sites than men, and part of the reason is because they receive more support from empathetic female donors, a new study found.
Researcher Ethan Mollick, an associate professor of management at the University of Pennsylvania’s Wharton School, told Popular Science that a woman is 13 percent more likely to be successful at raising money on for a tech project on a crowdfunding site as a man trying to raise the same amount of money for the same project.
His research showed women-led tech campaigns met their fundraising goals 65 percent of the time compared with 30 percent of the time for men.
Initiatives led by women made up just 10 percent of technology campaigns on Kickstarter at the time the research was conducted.
Mollick said female donors who perceive shared structural barriers stemming from a common social identity – a condition known as activist choice homophily – feel driven to support other women in crowdfunding campaigns. Through experiments and observational research, Popular Science says Mollick found that women funders identified with women founders more than they did with male founders because they valued their similarities.
Female founders received only 2 percent of venture capital funding in 2017, per Popular Science. Mallick said educating male venture capitalists about bias and creating support structures for female entrepreneurs might help improve the opportunities for women seeking funding.
A report by pwc Global found that women were more successful overall at crowdfunding than men. Data showed that campaigns led by women were 32 percent more successful at reaching their funding target than those led by men across a wide range of sectors, geography and cultures.
The research found that men initiate more than three times as many crowdfunding efforts as women and though women attract fewer backers, the average pledge amount given to a female-backed campaign is about 12 percent higher.
Anne Stych is a freelance writer in Charlotte, North Carolina.
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