It is believed that it is easier for men to find money for a project than it is for women. But a new study showed that this rule has an important exception: Women more efficiently raise funds through crowdfinding, Mk.ru reported.
Females get money easier through crowdfunding platforms
According to scientists from the Indian University in the U.S., men are often prone to the stereotype that they should deal with large money, as opposed to women. That is why males believe that their chances to get financial support are higher.
However, when a woman decides to launch a start-up and raises funds through crowdfunding, the situation is right the opposite.
Crowdfunding is a fundraising model which has relatively recently received widespread popularity.
When a businessman-to-be has an idea and wants to create something new, he or she advertises it via an Internet platform, where anyone can financially support the project.
Obviously, in order for the project to be successful and stand out from the crowd, so to speak, the founder of the startup needs to not only prove that the idea is viable, but also make people believe the project will go through. Otherwise, not many people will agree to invest.
To find out whether success on crowdfunding platforms depends on the gender, scientists analyzed 416 projects that appeared on the largest Internet platform within the last 3 years. It turned out that on average women had higher chances of raising the necessary amount of money.
Subsequently, experts tried to figure out the reasons behind women’s success. Researchers invited 73 people, none of them were professional investors. As a result, these people often subconsciously perceived the author of a project as more “trustworthy” if it was a woman. Here is the possible explanation: Women are able to raise funds online easier because people trust them more.