Crowdfunding Can Overcome Obstacles for Women Entrepreneurs
For every nine men raising equity financing to start and scale their businesses, only one woman does. Fundraising for your company is hard, even for men, but, women face greater challenges.
Let’s explore some of these challenges:
Male investors lure women to meet under the pretense of being able to pitch their companies only to receive unwarranted sexual advances and while most men are not like this, far too many still are.
Unintended bias as a result of pattern recognition.
In reality, people are more likely to invest in people who are like them. It’s called homophily and people of the same gender, race, and/or ethnic group tend to associate and bond with each other. Gender is the strongest bond and when you look at the numbers, women stand less of a chance.
Not a women friendly environment.
Business is about bravado and because women tend to be more conservative they often feel intimidated and left out.
Crowdfunding gives vendors, colleagues, friends, and family a way to be your sales force. Crowdfunding is the most powerful marketing machine in our world today yet only 17% of companies that raise money through crowdfunding have women on the founding team. Women have decision-making power and publicly raising equity funding can be a game-changer – but only if we join together to take advantage of it.