Equity Crowdfunding Women

Paula V. Groza ,

The 2013 State of Women-Owned Businesses Report found that there are 8.6 million women-owned businesses in the United States. These companies generate over $1.3 trillion in revenues and employ nearly 7.8 million people. Between 1997 and 2013, the rate of women-owned firms increased by 59%, which was1½ higher than the national average.

In spite of these encouraging statistics, women are still not operating in the markets at their fullest potential. A study by Stanford University estimated that roughly 4.2% of female-owned businesses received venture capital funding in 2013. A consensus of several studies examining women’s raising capital successes revealed they generally get less financing than their male counterparts. But here’s some upbeat news on the subject: equity crowdfunding is soon to be passed into law and may be the answer to this ongoing problem for female business owners. In fact, North Carolina Congressman Patrick McHenry declared in the Boston Business Journal that the equity crowdfunding bill might pass as early as July 2014.

 

 

business woman with earned money

business woman with earned money

Equity Crowdfunding Women
Businesswomen encounter many obstacles on the pathway to success. Equity crowdfunding will facilitate access to capital.
Crowdfunding – a Lady Friendly Financing Option

The growth and expansion of women-owned businesses largely depends on their savings, credit scores and families, leaving them predisposed to risk. Even though no studies suggest women face outright discrimination, they clearly encounter diverse obstacles on the path of entrepreneurship. Factors such as structural barriers and having different motivations for their firms block access to capital, which in turn decreases their ability to grow and increases the risks for financial distress.

However, there is light at the end of the tunnel. This year on Women’s International Day, Indiegogo reported that 47% of their successful crowdfunding campaigns were run by women. Female-owned businesses are nearly four times more likely to succeed in raising capital through crowdfunding than through traditional means. Equity crowdfunding may just be the missing link for female entrepreneurs.

From Good Looks to Appealing Business Outlooks

A 2014 global study of business and gender-specific issues in 30 countries ranked the United States as the #1 country for businesswomen to prosper. Although they’re still cautious about the nation’s economic recovery, a Hartford Financial report showed female entrepreneurs feel more confident about the success of their business than male company owners. Women are naturally empathetic communicators and dedicated supporters. Their demonstrated optimism, willingness to fund social projects and active presence in numerous markets are just a few reasons why we believe the equity crowdfunding model will fit them perfectly.

By democratizing the world of finance, equity crowdfunding has the power to turn the marketplace into a micro-version of our society. The typical entrepreneur and/or investor will no longer be the middle-aged caucasian male, but an evolved, diversified, equally-gendered hybrid. There is a demanding need in female-owned companies for an alternative means of gaining financial independence and lessening the reliance on bank loans, personal savings, venture and angel capital. While equity crowdfunding is expected to disrupt the dynamics of the entire U.S. marketplace, truCrowd believes it might turn out to develop even more benefits for businesswomen – entrepreneurs and investors alike.

 

HEADLINE NEWS

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TechCrunchSnopes seeks crowdfunding in ownership battleTechCrunchHow many times have you heard some urban legend, chain letter or misleading bit of news repeated and immediately found a thorough, fact-based debunking on Snopes? Like every damn day for the last 20 years or so, right? S [...]

Vermont Public RadioAs Regulations Change, Interest In Equity Crowdfunding GrowsVermont Public RadioWhat's often called 'equity crowdfunding' is giving businesses, especially start-ups, a way to raise money when they can't access capital from traditional sources, l [...]

Can-Do Playground featured in national park crowdfunding campaignnews.delaware.govWILMINGTON – On the heels of its 10th anniversary celebration, the Can-Do Playground at Alapocas Run State Park has been selected to be featured on the national crowdfunding site, “Fund Your Park,” by th [...]

MashableStudy shows women are way better than men at crowdfundingMashableMale investors often don't fully understand the value of ideas women entrepreneurs pitch them. They throw capital at food delivery service after food delivery service, but ignore ideas that cater to groups t [...]

BBC NewsCrowdfunding bid to save Brighton's seafront terracesBBC NewsA crowdfunding campaign is being launched to kick-start the repair and regeneration of a section of crumbling Victorian seafront arches. The entire Grade II listed cast iron structure that forms Brighton's [...]

YouCaring Selected as Preferred Crowdfunding Platform for Major League BaseballMarkets InsiderSAN FRANCISCO, July 26, 2017 /PRNewswire/ -- YouCaring today announced that it has entered into a partnership with Major League Baseball (MLB) to bring crowdfunding to the Big Leagues. Throug [...]

Friday Hack Chat: Crowd SupplyHackadayCrowdfunding is a mixed bag, at best. On one hand, you have fantastically successful products like Pebble, Oculus, and the Kano personal computer that managed to take in money, turn out a product, and become a successful company. (If even just for [...]

State College NewsMillbrook Marsh Selected for National Crowdfunding CampaignState College NewsMillbrook Marsh Nature Center in College Township has been selected to participate in the National Recreation and Park Association's "Fund Your Park," crowdfunding campaign. C [...]

American Banker (subscription)Crowdfunding platform expands into small-business lendingAmerican Banker (subscription)CircleUp, which runs an online platform where institutional investors provide equity capital to small businesses, is expanding into lending. The San Francisco-based com [...]

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