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Mar 24, 2015

Crowdfunding For Women Entrepreneurs Can Help Overcome Obstacles

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By Lelia Hall


As the investors put it, the numbers in the Wall Street Journal Report do not lie. The trend in this report has shown that women are able to outperform their male counterparts whenever running the crowdfunding campaigns in which the target is to raise capital meant for their ventures. Success in crowdfunding for women is more natural than many people may think. It comes from their natural traits such as being more communicative and expressive. This means that they are in a better position to tell their story in a way that is able to catch the emotional core of the backers and other contributors.

The Wall Street Journal statistics are clearly what any upcoming and prospective female entrepreneur will not want to look at. Only 17% the board seats belong to women in the Fortune 500 companies. Of all the venture-backed firms, only 8% of CEOs are females and 30% of companies are owned by women.

As a powerful source of seed capital and a good alternative for business startups, this method of funding enables the entrepreneur to tap into a large number of individuals of different backgrounds (crowd), each investing a small amount through a virtual network or a social network. Millions or businesses are funded each year and billions of funds are raised through this method.

It can be done through a social network or a virtual network. Today, billions or funds are raised benefiting millions of startups, most owned by female entrepreneurs. Some of the leading sites for crowdfunding include Kickstarter, Indiegogo, and RocketHub. Most of these are broad-based and do not target any particular gender. However, there are sites that specialize in women crowdfunding. A good example is Plum Alley.

It is a site that is made of women with the aim of helping other women success. On top of availing the much-needed startup capital; it comes with additional benefits such as expert advice to the members. Experts all industries are brought to advise and educate the members in seminars and the experts get paid for their services.

The main advantage of crowdfunding is the benefits it offers to the female entrepreneurs. Although very competitive, it offers a very transparent way of raising the capital. As such, it over the sexual harassment that is common when exploiting alternative methods. Several stories have been published where the female entrepreneur ends up getting unwarranted sexual advances from the prospective male investors when pitching their business ideas.

The pitching business is often said is not the art for ladies. While the males are known to exhibit bravado and are capable of making ridiculous projections, the females are known to be more conservative and are likely to feel intimidated when they go to the angel forums. As such, this alternative funding method is a blessing to them.

It also comes as an alternative source of capital that is better as compared to pitching in a room full of intimidating male audience (business angel) where the ladies are likely to feel intimidated and less successful. In this manner, they get to tell their story in a way that captures the emotion of the targeted investor and thus can easily succeed. In this method, you get to use your network of colleagues, friends, family members, and vendors as a powerful marketing force.




About the Author:

You can visit www.msgenuity.com/ for more helpful information about Crowdfunding For Women Is An Opportunity Female Entrepreneurs Cannot Afford To Miss.


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