Crowdfunding Ups Female Participation in Business

Forbes magazine recently published a piece highlighting one of the lesser-known spinoff benefits to equity crowdfunding: that this exploding-into-public-consciousness practice actually introduces a boon to the average businesswomen.

womeninbizThe practice, the article explains, is “democratizing funding” by razing the playing field. Suddenly, female-led businesses are cheek by jowl with men’s in their pursuit of outside capital. Equity crowdfunding platforms bump the presence and prominence of their operations via the dynamic, easy access that is this financing-finding option’s loveliest feature. Smart, well-managed fund-seeking campaigns attract dollars for companies large and small, including those at the latter end of the scale undertaken by women whose state of under-capitalization is largely a function of their time out of the workforce raising children. Thanks to crowdfunding, this contingent of the would-be corporate population can secure membership in a club that might not otherwise have had them.

More than that, the Forbes story suggests that crowdfunding is enhancing female participation in the investing side of the equation, too. It cites an increase in women angel investors (the Center for Venture Research reports that, from 2011 to 2012, the number of women investors spiked by 80 percent, from 12 percent of the total to 22 percent) and speculating that that’s thanks to the increased simplicity with which they might view opportunities through crowdfunding sites.

It’s an interesting concept, and one we’ve taken note of ourselves here at FundRazr. About 57 percent of successful campaigns on our site were already created by women. It’s a wonderful development that suits us — with our professed preference for turning paradigms upside down — just fine.

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