Crowdfunding Closes the Gender Gap


Throughout all of modern history in developed nations, women have made less than men. This occurs even when women hold the same job titles and responsibilities as their male counterparts with the same education and experience. Studies have started to show, however, that women are more successful than men at raising money through a crowdfunding campaign. Women might be less than 10% of the CEOs of today’s venture-backed firms, but the research is conclusive: if you want 100% funding, let a woman run your crowdfunding campaign.

How influential could women be in crowdfunding? Since the creation of the JOBS Act, it is estimated that up to 2,000 jobs have been created through specific crowdfunding efforts. Now imagine what women could do if the rules were changed to allow for more access to investors that might not qualify to pursue equity right now?

Women Do More Than Just Drive Successful Campaigns

Indiegogo has seen women manage over 40% of their successful campaigns, but that isn’t how the gender wage gap is going to get closed. You see, women who have a successful campaign will raise more than men within the confines of that campaign. Not only is the number of contributors higher in a campaign run by a woman, but so is the overall amount of money that is raised.

When women have access to the capital funding that they need, then there’s no telling what could happen to the future marketplace. Millennials have an amazing ability to spread information across the internet through social media networking and other online connections. Baby Boomers have the life experience to bring problem-solving products and ideas to the market. Put women from these generations together and you’ll have the recipe for success.

According to the Kauffman Foundation, women aren’t able to just raise more money from crowdfunding either. When women are able to eliminate the wage gap in their industry, then that industry creates more jobs and supports the economy more effectively than industries that still experience an extensive wage gap.

Why Does Crowdfunding Eliminate the Wage Gap?

With crowdfunding, the focus isn’t on the person or the ability to get a job done. The focus is on the potential of any given product or idea. There is no question as to the gender of the entrepreneur or even the education of that person. A history of results and a clear, concise marketing pitch for a campaign that relates to potential investors is more powerful than a strong C/V. Because of this and a woman’s natural ability to tap into emotions more easily than a man, crowdfunding becomes the natural platform where women can finally close the gap.

As regulations become clearer and equity crowdfunding becomes a viable opportunity for women-run businesses, the job market is likely to explode. Opportunities are expected to be better than ever before. From family to the stranger who is browsing your website right now, everyone will want to get on-board with a good opportunity and thanks to crowdfunding, women will find it a lot easier to ask for the funding that is needed.