Crowdfunding as a Capital Source for Women Entrepreneurs

ByNWBC Council

Crowdfunding as a Capital Source for Women Entrepreneurs

Report CoverDownload Kickstarter Report Here

Crowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kickstarter, a Reward- Based Crowdfunding Platform analyzes the role of an entrepreneur’s online social network and examine additional factors that may affect success rates in crowdfunding.

 

 

Report Cover

Download Kiva Report Here

Crowdfunding as a Capital Source for Women Entrepreneurs: Case Study of Kiva, a Non-profit Lending Crowdfunding Platform  analyzes the role of an entrepreneur’s online social network and examine additional factors that may affect success rates in crowdfunding.

In 2017, Kickstarter and Kiva provided original data to the Council to explore gender help us identify the key determinants of success for women entrepreneurs, which would facilitate a better understanding of the policy implications of crowdfunding and its promise for small business finance in the U.S.

Some of the most notable results from both research reports include the following:

  • The first 30 days of campaigns matter the most. On Kickstarter, as a fundraising campaign gets closer to its end, and especially after the first 30 days, the likelihood of success decreases substantially.
  • Setting a realistic goal is essential. The funding goal should take into account a borrowers’ network size. On Kiva, for women with a smaller online network, greater success might be achieved by setting a goal less than $6,000.
  • Your personal stories are powerful tools to reaching your funding goals. On Kiva, longer personal stories were associated with higher likelihood of success compared to other textual pitch categories.
  • Network size matters, but how it is leveraged is more important. Both the number of Facebook shares and number of Facebook followers are predictors of success on Kickstarter, but the number of Facebook shares has notably larger effect in success rates.

About the author

NWBC Council administrator

The National Women’s Business Council (NWBC) is a nonpartisan federal advisory council established to serve as an independent source of advice and policy recommendations to the President, the Congress, and the Administrator of the U.S. Small Business Administration on issues related to women’s business enterprise. The Council is comprised of eight small business owners from across the country, six representatives of national women’s business organizations, and one Chairperson, Liz Sara, who was recently appointed by President Donald J. Trump in August 2018.